12. The following information was taken from Hurlbert Company cash budget for the month June Beginning cash balance Cash receipts Cash disbursements If the company has a policy of maintaining an end of the month cash balance of $60,000, the amount the company would have to borrow is A) $36,000. B) $15,000. C) $24,000. D) S0 S69,000 93,000 117,000 13. From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that A) bond interest is deductible for tax purposes. B) interest must be paid on a periodic basis regardless of earnings. C) income to stockholders may increase as a result of trading on the equity. D) the bondholders do not have voting rights. 14. Which of these describes the major difference between stocks and bonds? A) B) C) Stocks are cheaper than bonds. Bonds represent a safer investment than stocks. Stockholders own a piece of the company while bondholders have loaned money to the company Companies have to pay back stockholders but not bondholders. D) 15. Gross profit equals the difference between A) net income and operating expenses. B) net sales revenue and cost of goods sold. C) sales revenue and operating expenses. D) sales revenue and cost of goods sold plus operating expenses 16. The control principle related to not having the same person authorize and pay for goods is known as A) establishment of responsibility B) independent internal verification. C) separation of duties. D) rotation of duties