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12) On Janury , 2019, Tomres Corporation issued 20,000 shares of SI0 parvalue common ock for SIl per share. Which of the following statements is true? A) The Common Stock account will increase by $220,000. B) Total stockholder equity will increase by $200.000. C) The Pald-in Capital in Excess of Par Value acceunt will increase by $20,000 D) The Cash account will increase by $200,000. 13) On the balance sheet, the cumulative amount of plant and equipement already expensed is reported in an scoount called A) Accumulated Amortization C) Accumulated Depreciation B) Amortization Expense D) Depreciation Expense 14) Which of the following describes what happens when bonds are issued when the market interest rete is less than the stated interest rate? AL The bonds are issued at a premium. B) The bonds are issued at a premium and the effective interest rate is bigher thythe stated rate C) It raises the effective interest rate above the stated rate of interest. D) The bonds are issued at less than their face value. 15) Which of the following statements about why companies choose not to pay cash dividends is (are) true? A) The board and management prefer to reinvest all net income for future growth. B) The corporation does not have sufficient retained eamings. C) The corporation does not have sufficient cash. D) All of these statements are true. 16) Which of the following items would be least likely to appear in the current liabilities section of a classified balance sheet? A) Accounts payable C) Salaries payable B) Interest payable D) Bonds payable 17) What happens when merchandise is delivered FOB Destination? A) The buyer pays the freight cost. B) The seller pays the freight cost and records an expense. C) The seller pays the freight cost. D) The seller records transportation-out expense. 1 Under what condition should a pending lawsuit be recognized as a liability on a company's balance sboet? A) The outcome is probable and can be reasonably estimated. B) The amount can be reasonably estimated. C) The outcome is probable. D) The outcorae is reasonably possible

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