Question 4 1. Q: Which is NOT a common reason for a company to repurchase stock shares? A. The company intends to go private. B. Stock shares are believed to be too expensive for small investors to purchase. C. The company needs shares for employee compensation programs. D. Management believes that shares are undervalued. 1 points

Question 5 1. Q: Which of the following is NOT true regarding liabilities? A. They represent obligations of the firm B. The represent a form of financing C. They require repayment in cash D. They equal assets minus owners' equity 1 points

Question 6 1. Q: A company purchases $4,000 of products for its merchandise inventory on account. The invoice is dated April 3 with payment terms of 2/15, n/45. If the company pays the invoice on April 17, the journal entry will include: A. a credit to inventory of $80 B. a debit to cash of $3,920 C. a debit to accounts payable of $3,920 D. a credit to sales discounts of $120