31. Which of the following statements about the benefits enjoyed by the owners of common stock is not correct?

A. If the company ceases operations, stockholders share in any assets remaining before creditors have been paid.

B. Investors in a corporation are called stockholders.

C. Some classes of common stock can carry more votes than others.

D. Stockholders receive a share of the corporation's profits when distributed as dividends.

32. When the amount of a contingent liability cannot be reasonably estimated but its likelihood is probable, the company should:

A. record the amount of the liability times the probability of its occurrence.

B. exclude the information about the contingent liability from its financial statements and footnotes.

C. include a description in the notes to the financial statements.

D. record the amount of the liability as a long-term liability on the balance sheet.

33. If a company incorrectly records cash received for services to be provided in the future with a debit to Cash and credit to Sales Revenue, how will this error affect net income for the current period?

A. Net income will be too high in the following period.

B. Net income will be too high.

C. Net income will not be affected by this error.

D. Net income will be too low.

34. A real estate management company buys land that contains an abandoned apartment building for $4.5 million. It pays a construction company $500,000 to demolish the apartment building. Which of the following is correct?

A. The company would record $500,000 as demolition expense.

B. The company would record $4 million as the cost of the land.

C. The company would record $5 million as the cost of the land.

D. The company would record $4.5 million as the cost of the land.

35. Accounts Payable had a balance of $18,370 at the beginning of the month. During the month, three debits in the amounts of $4,530, $11,130, and $14,630 were posted to Accounts Payable, and three credits in the amounts of $3,770, $9,670, and $12,870 were posted to Accounts Payable. What is the ending balance of the Accounts Payable account?

A. $14,390.

B. $22,350.

C. $48,660.

D. $3,980.