u eas Tel surplus should be interpreted as representing I1. The balance in Retained Earnings s a. True b. False must al 12. The par value of f common stock must always be equal to its market value on the date the stock is issued. True b. False issued, and 2,000 shares are reacquired, the number of outstand 13. Ir s0,000 shares are authorized, 41,000 shares are shares is 43,000 a. True b. False ration issues stock at a premium, it reports the premium as an other income item on the income 14. When a corpo statement a. True b. False 15. When the board of directors declares a cash or stock dividend, this action decreases retained carnings. a. True b. False 16. Of the three widely used inventory costing methods (FIFO, LIFO, and average cost), the LIFO method of costin inventory assumes costs are charged based on the most recent purchases first. a. True b. False 17. Under the periodic inventory system, the inventory account continuously discloses the amount of inventory on ha a. True b, False 18. During periods of rapidly rising costs, the use of the LIFO method results in illusory or inventory profits. a. True b. False 19. The acquisition costs of property, plant, and equipment should include all normal, reasonable and necessary costs get the asset in place and ready for use. a. True b. False 20. An estimate of the amount for which an asset can be sold at the end of its useful life is called residual value. a. True b. False