20. The Just in Time concept of inventory management is best illustrated by:

A. Receiving deliveries of materials from suppliers just before the materials are used in the production process.

B. Completing the manufacturing process just before the deadline established by the customer

C. An automated factory that reduces production time below that of other companies in the industry

D. Selling finished products before they go out of style

21. An asset which costs $7,200 and has accumulated depreciation of $1,800 is sold for $4,500. What amount will be recognized when the asset is sold?

A. A gain of $900

B. A loss of $900

C A loss of $2,700

D. A gain of $2,700

22. Which depreciation method is most commonly used among publicly owned corporations?

A. Straight-Line

B. Double Declining Balance

C. Units of Output

D. All three are equally used

23. A bond that sells for 102 has a cost of

A. $1,002

B. $1,020

C. $1,200

D. $1,000

24. If a bond selling at 102, it is selling at

A. Maturity value plus 2% interest

B. A discount

C. A premium

D. $102 per bond

25. Most preferred stock have the following characteristics, EXCEPT:

A. To receive dividends on a preferred basis

B. Cumulative Dividends

C. Voting Rights

D. Callable at the option of the corporation

26. Cash dividends paid to stockholders will appear in which section of the statement of cash flows:

A. Operating

B. Investing

C. Financing

D. Discontinued

27. Which of the following would usually be the greatest amount?

A. The number of shares authorized

B. The number of shares issued

C. The number of shares outstanding

D. They must all be the same amount

28. Which of the following is an investing activity?

A. Purchase of equipment

B. Payment of interest

C. Issuing common stock

D. Issuing Long-term debt

29. Which of the following would indicate a cash disbursement?

A. Selling equipment at a loss

B. A decrease in accounts receivable

C. An increase in prepaId expenses

D. A decrease in inventory

30. The credit term 2/10, n/30 means

A. After 10 days 2% interest is charged

B. There is a 10% discount if payment is received within 30 days

C. There is a 2% discount if the payment is received within 10 days

D. There is a 10% discount if paid immediately and a 2% discount if paid within 30 days