SECTION II - Cont'd 6. The major objective of financial reporting is to: a. Stimulate economic growth. b. Provide financial information for decision making. C. Provide timely information. d. Fulfill the needs of management. 7. Which of the following would not be reported in the Statement of Income? a. Dividends earned. b. Loss on the disposal of an investment in common stock. c. Dividends paid to Investors d. Gain on sale of equipment. 8. Which of the following must be considered in estimating depreciation on an asset for an accounting period? a. The current fair market value of the asset b. Its useful life c. The decline of the asset's fair market value d. The asset's maintenance cost 9. On December 31, 2018, J. Kramer's capital account showed a balance of $27,540. The balance was $21,370 on January 1, 2018. J. Kramer withdrew $800 from his account each month. In addition, J. Kramer withdrew $250 in merchandise for his personal use on July 15. On September 3, J. Kramer invested an additional $3,500 in the company. What was the company's net income for 2018? a $180 b. ($180) c. $12,520 d. $12,270 10. All of the following limit the usefulness of the balance sheet except: a. Use of supporting schedules, additional disclosure, supplemental information and parenthetical notation. b. Variations among companies in balance sheet classification, terminology, and information disclosed c. Adherence to the historical cost concept of accounting. d. None - there are no limitations to the Balance Sheet