TRUE OR FALSE $(18$ points $-2$ point each, no partial credit$)-$ Circle$/$Bold$/$Underline the

correct answer

Neither gain nor loss can be recognized when a company sells a fully depreciated fixed

asset

TRUE

FALSE

Impairment of a finite life tangible asset reduces the sum of the future depreciation

expenses for that asset

TRUE

FALSE

The choice of GAAP depreciation assumptions impacts cash through taxes paid

TRUE

FALSE

Defined contribution retirement plans do not lead to long$-$term assets or liabilities on the

firm's Balance Sheet

TRUE

FALSE

The GAAP tax expense reported for the year is always less than the taxes paid during the

year

TRUE

FALSE

Outstanding shares of stock are authorized shares minus shares in the Treasury Stock

account

TRUE

FALSE

A stock split does not impact the Net Income of the firm

TRUE

FALSE

An acquisition of another firm, paid for in cash, is shown in the Investing section of the

Statement of Cash Flows

TRUE

FALSE

Both the payment and the receipt of dividends are shown in the Financing section of the

Statement of Cash Flows