26._______ Treasury Stock is reported on the balance sheet a. as an addition to Common Stock b. as an addition to Paid in Capital in Excess of Par c. as a deduction from Stockholders Equity d. as an addition to Stockholders Equity

_27.______ On a cash flow statement, the net cash flow reconciles the beginning and ending balances ofa. net income b. the accumulated depreciation account c. the common stock account d. the cash account

28._______ When John borrowed money for his new car on an installment loan, his accountant advised him that each payment made for the car would consist of a. principal repayment only b. principal plus interest on the unpaid balance c. interest only d. none of these

_29.______ Which of the following will decrease Retained Earnings for a corporation? a. declaring a dividend; b. issuing common stock c. closing a net income d. paying a dividend in cash e. purchase of treasury stock

30._______ When a small stock dividend is declared, the amount debited to Retained Earnings should be the a. par value of the shares b. the book value of the shares c. the earnings per share d. the market value per share

II. Name the 4 Rights of the Common Stockholder:

1.

2.

3.

4.

III. Why would a company purchase its own stock?