Which of the following statements is correct answer

Which of the following statements is CORRECT?
Answer
Selected Answer:
Cheers' shareholders (the ex-partners) will now be exposed to less liability.
Correct Answer:
Cheers' shareholders (the ex-partners) will now be exposed to less liability.
 Question 7
2 out of 2 points
You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family reunion. At the reunion
your brother gave you a check for the stock and you gave your brother the stock certificates. Which of the following
statements best describes this transaction?
Answer
Selected Answer:
This is an example of a direct transfer of capital.
Correct Answer:
This is an example of a direct transfer of capital.
 Question 8
2 out of 2 points
You recently sold 200 shares of Apple stock to your brother. The transfer was made through a broker, and the trade
occurred on the NYSE. This is an example of:
Answer
Selected Answer:
A secondary market transaction.
Correct Answer:
A secondary market transaction.
 Question 9
2 out of 2 points

DeYoung Devices Inc., a new high-tech instrumentation firm, is building and equipping a new manufacturing facility.
Assume that currently its equipment must be depreciated on a straight-line basis over 10 years, but Congress is
considering legislation that would require the firm to depreciate the equipment over 7 years. If the legislation becomes
law, which of the following would occur in the year following the change?
Answer
Selected Answer:
The firm's net cash flow would increase.
Correct Answer:
The firm's net cash flow would increase.
 Question 10
2 out of 2 points
Which of the following items is NOT included in current assets?
Answer
Selected Answer:
Bonds.
Correct Answer:
Bonds.
 Question 11
2 out of 2 points
Lucy's Music Emporium opened its doors on January 1, 2012, and it was granted permission to use the same
depreciation calculations for shareholder reporting and income tax purposes. The company planned to depreciate its
fixed assets over 20 years, but in December 2012 management realized that the assets would last for only 15 years. The
firm's accountants plan to report the 2012 financial statements based on this new information. How would the new
depreciation assumption affect the company's financial statements?
Answer
Selected Answer:
The firm's cash position in 2012 and 2013 would increase.
Correct Answer:
The firm's cash position in 2012 and 2013 would increase.
 Question 12
2 out of 2 points
Which of the following statements is CORRECT?
Answer
Selected
Answer:
A typical industrial company's balance sheet lists the firm's assets that will be converted to cash first,
and then goes on down to list the firm's longest lived assets last.
Correct
Answer:
A typical industrial company's balance sheet lists the firm's assets that will be converted to cash first,
and then goes on down to list the firm's longest lived assets last.