19) 19) Which one of the following is true according to generally accepted accounting principles? A) Costs of goods sold are recorded based on the recognition principle. B) Income is recorded based on the realization principle. C) Costs are recorded based on the realization principle. D) Depreciation is recorded based on the recognition principle. E) Depreciation is recorded based on the market value principle. 20) 20) Which one of the following is an unintended result of the Sarbanes-Oxley Act? A) Identification of internal control weaknesses B) Increased management awareness of internal controls C) More detailed and accurate financial reporting D) Corporations delisting from major exchanges E) Increased responsibility for corporate officers 21) --- 21) Winston Industries had sales of $843,800 and costs of $609,900. The company paid $38,200 in interest and $35,000 in dividends. The depreciation was $76,400. The firm has a combined tax rate of 24 percent. What was the addition to retained earnings for the year? A) $61.060 B) $68,400 C) $57.240 D ) $55,668 E) $56,200 22). 22) Which term relates to the cash flow that results from a company's ongoing, normal business activities? A) Capital spending B) Cash flow from assets C) Net working capital D) Cash flow to creditors E) Operating cash flow 23). 23) Gloending current king capital? 23) Global Tours has beginning current assets of $1,360, beginning current liabilities of 5940, ending current assets of $1,720, and ending current liabilities of $1,080. What is the change in net working capital? A) $1.060 B) $190 D) $170 E) $220 90 C)5940 24) 24) Which one of the following questions is least likely to be addressed by financial managers? A) Should customers be given 30 or 45 days to pay for their credit purchases? B) Should the firm acquire new equipment? C) Should the firm borrow more money? D) How much cash should the firm keep on hand? E) How should a product be marketed? B-5