11. The balance in Retained Eanings should be interpreted as representing surplus cash left over for dividends. a. True b. False 12. The par value of common stock must always be equal to its market value on the date the stock is issued. a. True b. False 13. r 50,000shares are authorized, 41,000 shares are issued, and 2,0 shares are reacquired, the number of outstanding shares is 43,000 a. True b. False 14. When a corporation issues stock at a premium,itreports the premium as an other income item on the income statement. a. True b. False 15. When the board of directors declares a cash or stock dividend, this action decreases retained earnings. a. True b. False 16. Of the three widely used inventory costing methods (FIFO, LIFO, and average cost),the LIFO method of costing inventory assumes costs are charged based on the most recent purchases first. a. True b. False