251. When we purchase a few shares of another corporation, what is the effect on our stockholders' equity?
     1. Increase. B) Cannot tell from the given information.

C) No effect. D) Decrease.

252. For a journal entry with only two lines, the following entry is valid: Decrease in Revenue, Increase in Expense.
     1. True B) False

253. Social Security
     1. Is a Defined Benefit Pension Plan B) Is a Defined Contribution Pension Plan

C) Is offered by local governments D) Is an optional Pension Plan

Sales revenue	$350,000
Accounts receivable	$280,000
Ending inventory	$230,000
Cost of goods sold	$180,000
Sales returns	$50,000
Sales discount	$20,000

259) What is the gross profit?

A) $170,000. B) $280,000. C) $100,000. D) $50,000.

260. Which of the following is not a true statement?
     1. The mixture of liabilities and stockholders' equity a business uses is called its capital structure.
     2. As a company's level of debt increases, the risk of bankruptcy increases.
     3. Interest expense incurred when borrowing money, as well as dividends paid to stockholders, are both tax-deductible.
     4. Companies that are believed to have high bankruptcy risk generally receive low credit ratings and must pay a higher interest rate for borrowing.