Question 26 2 pts Which of the following statements is incorrect? Capital expenditures decrease assets. Ordinary repairs and maintenance decrease net income. Additions and improvements to a depreciable asset occur infrequently. o Ordinary repairs and maintenance are recurring in nature. Question 27 2 pts Which of the following is correct regarding gain or loss on disposal of a long-lived asset? Failure to report a loss on the sale of an asset results in an understatement of net income. Failure to report a gain on the sale of an asset results in an overstatement of stockholders' equity. Failure to report a loss on the sale of an asset results in an overstatement of earnings per share. Failure to report a gain on the sale of an asset results in an overstatement of net income. Question 30 2 pts When a company needs funds to finance the expansion of its operations, which of the following is NOT an advantage of issuing bonds rather than issuing stock? The dates for the interest and maturity payments are fixed. Bonds can usually be issued at a low interest rate and the proceeds can be invested to earn a higher rate. o o o Interest expense is tax deductible but dividends are not. Stockholders remain in control as bondholders cannot vote or share in the company's earnings Question 31 2 pts Which of the following would not be included under the account category of expenses within the chart of accounts? Cost of goods sold. Income tax expense. Prepaid rent expense. Interest expense