QUESTION 14 In the statement of cash flows, the purchase of supplies is classified as: O 1. Operating activities O 2. Investing activities O 3. Financing activities O 4. None of the above QUESTION 15 Does treasury stock represent? O 1. Shares of ownership in the United States Treasury Department. O 2. A current asset. O 3. Authorized shares that have never been issued O 4. Previously outstanding shares that have been repurchased by the issuing company QUESTION 16 Shares that have been sold and are in the hands of stockholders are called O 1. Treasury O 2. Underwritten. O 3. Outstanding 4. Issued QUESTION 17 Which of the following would usually be the greatest amount? O 1. The number of shares authorized O 2. The number of shares issued O 3. The number of shares outstanding O 4. They must all be the same amount. QUESTION 18 The main purpose of recording depreciation is to O 1. allocate the cost of a tangible asset to the periods in which its use contributes to earning revenue O 2. estimate the remaining useful life of the asset. O 3. report the asset on the balance sheet at the estimated amount for which the asset could be sold on the balance sheet date O 4. estimate the current replacement cost of the asset