278. When treasury stock is resold at a price above cost:
     1. Additional Paid-in Capital is increased. B) A loss is reported.

C) A revenue account is credited. D) A gain account is credited.

279. ABC has beginning inventory for the year of $12,000. During the year, ABC purchases inventory for $150,000 and ends the year with $20,000 of inventory. ABC will report cost of goods sold equal to:

A) $150,000. B) $142,000. C) $170,000. D) $158,000.

280. When a company issues 25,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include:
     1. A credit to Common Stock for $250,000.
     2. A debit to Cash for $25,000.
     3. A debit to Additional Paid-in Capital for $25,000.
     4. A credit to Additional Paid-in Capital for $225,000.

281. Depletion is the expense
     1. when using up an intangible asset B) when using up a natural resource

C) when using up a building D) when goodwill dies

282. Which of the following is a sign that a company cannot quickly turn its receivables into cash?
     1. A low receivables turnover ratio.
     2. A low average collection period.
     3. Both a high receivables turnover ratio and a low average collection period.
     4. A high receivables turnover ratio.