17. In the primary equity market, the stockholder:

1. pays for the stock.
2. receives the final proceeds from the sale of stock.
3. Issues the stock certificates.
4. oversees the transaction to make sure all regulations are met.
5. advises the investor on the price he should pay for the stock.

4. The difference between depreciation expense and accumulated depreciation is:

a. Depreciation expense is the amount you paid for an asset and Accumulated depreciation is the net value after depreciation is subtracted from the cost of fixed assets.

b. Depreciation expense is found on the balance sheet and Accumulated depreciation is found on the income statement.

c. Depreciation expense is the amount of depreciation that is being taken for this period and Accumulated depreciation is a contra asset (subtracted from the initial cost of fixed assets).

d. Depreciation expense is a contra asset (subtracted from the initial cost of fixed assets) and Accumulated depreciation is the amount of depreciation that is being taken for this period.

e. There is no difference between the two.

53. For a combined common size and common base year analysis

a. you divide all items across, using the base year as the numerator.

b. you divide all items on the balance sheet by total liabilities.

c. you divide all items on the income statement by net income.

d. you divide the dollar amounts across, using the base year dollar amount as the denominator

e. you divide the common size percentages across, using the base year percentage as the denominator.