Acc 210-T.3. Version 1 Megan kerirsh! Student: Date: 1. When a company declares cash dividends, retained earnings is reduced. True False 2. Salvage value is an estimate of an asset's value at the end of its benefit period. True False 3. A net loss arises when revenues exceed expenses. True False 4. Plant assets are used in everyday operations of the business and have useful lives that extend over more than one accounting period. True False 5. Current liabilities are obligations not due within one year or the company's operating cycle, whichever is longer. True False 6. Authorized stock is the total number of shares outstanding. True False 7. Generally accepted accounting principles are the concepts and rules for preparing financial statements. True False 8. FUTA taxes are: A. Social Security taxes. B. Medicare taxes. C. Employee income taxes. D. Unemployment taxes. E. Employee deductions. 9. If equity is $300,000 and liabilities are $192,000, then assets equal: A. $108,000 B. $192,000 C. $300,000 D. $492,000 E. $792,000 (Ver # 1) 1