AICPA Exam CPA-Business Topic 3 Question 89 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 89
Topic #: 3

[All CPA-Business Questions]

Which of the following actions may be taken by a corporation's board of directors without stockholder approval?

APurchasing substantially all of the assets of another corporation.

BSelling substantially all of the corporation's assets.

CDissolving the corporation.

DAmending the articles of incorporation.

Show Suggested Answer

Suggested Answer: D

Choice 'd' is correct. Shipping costs (which are selling costs) would not be considered a carrying cost associated with inventory.

Choices 'a', 'b', and 'c' are incorrect. Each of the following would be considered a carrying cost associated with inventory.

A Insurance costs.

B Cost of capital invested in the inventory.

C Cost of obsolescence.

by Maricela at Jun 02, 2024, 12:39 AM

Limited Time Offer

25%

18 days ago

I think the board can dissolve the corporation without stockholder approval.

upvoted 0 times

...