TRUE OR FALSE?

** IF YOU CAN'T ANSWER THEM ALL, PLEASE DON'T ANSWER ANY**

1. When a company declares of cash dividends retained earnings is reduced.
2. Authorized stock is the total number of shares outstanding.
3. The asset turnover ratio measures how efficiently a company uses its assets to generate sales.
4. Pro forma income usually excludes items that the company thinks are unusual or nonrecurring.
5. Sales minus operating expenses equals gross profit.
6. Freight terms of FOB Destination means that the seller pays the freight costs.
7. Sales revenues are recognized during the period cash is collected from the buyer.
8. Under the lower-of-cost-or-market basis, market is defined as current replacement cost.
9. The safeguarding of assets is an objective of a company's system of internal control.
10. The custodian of the petty cash fund has the responsibility of recording a journal entry every time cash is used from the fund.
11. Both accounts receivable and notes receivable represent claims that expected to be paid in cash.