QUESTION 35 According to SFAC No. 6, net assets are: a. Increases in equity from transfers from owners b. Probable future economic benefits from passed transactions or events c. Change in equity from non-owner sources d. Residual interest in assets after deducting liabilities, equal to ownership interests QUESTION 36 Treasury stock is: a Common stock acquired by the company in the open market & recorded as negative equity b. Decrease in net assets from peripheral transactions c. Authorized but unissued common stock d. Gains recorded directly to stockholders equity QUESTION 37 Unlike Dell, Hilton's Income Statement records no cost of goods sold because a. Its really a balance sheet item b. As a service firm, there is no manufacturing cost of goods sold c. Its not recorded in the income statement, but presented in the Notes d. They ignore it based on earnings management reasons QUESTION 38 Which of the following items would be recorded as cash flows from investing activities on the statement of cash flows? a Depreciations & amortization b. Purchase of common stock Capital expenditures d. Not income