1. A motivation for a Company to invest includes which of the following:
   1. Companies invest extra cash into investments to produce higher income.
   2. Some companies are set up to produce income from investments.
   3. Companies make investments for strategic reasons.
   4. A & B
   5. B & C
   6. All of the above
2. To pay a cash dividend, the corporation must have:
   1. A sufficient balance in retained earnings.
   2. Paid-In-Capital in Excess of Par.
   3. The cash necessary to pay the dividend.
   4. Profitability in the period the Dividend is being paid.
   5. A & C.
   6. B & D.
   7. All of the above.
3. A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The difference between par value and issue price for this bond is recorded as a:
   1. Credit to Interest Income.
   2. Credit to Premium on Bonds Payable.
   3. Credit to Discount on Bonds Payable.
   4. Debit to Premium on Bonds Payable.
   5. Debit to Discount on Bonds Payable.