Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

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?

Show Suggested Answer Hide 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%

Off

Get Premium CPA-Business Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Geoffrey
24 days ago
The board's trying to pull a fast one, huh? Guess they think they're the corporate version of the Harlem Globetrotters or something.
upvoted 0 times
...
Mona
25 days ago
This is a classic case of the board trying to pull a fast one on the shareholders. I'm going with option D - they can't amend the articles without approval!
upvoted 0 times
...
Mariann
1 months ago
I know the board has a lot of power, but they can't just do whatever they want without the shareholders having a say. I'd go with option C as the correct answer.
upvoted 0 times
Esteban
3 days ago
B: I agree, the board definitely has the authority to make that decision.
upvoted 0 times
...
Dana
8 days ago
A: I think option C is correct. The board can dissolve the corporation without stockholder approval.
upvoted 0 times
...
...
Loise
1 months ago
Hmm, I think option B is the right answer here. The board can sell assets, but they need shareholder approval for the big stuff like dissolution or changing the articles.
upvoted 0 times
Vivienne
1 months ago
I agree, option B seems correct. Shareholder approval is needed for major decisions.
upvoted 0 times
...
...
Shanda
2 months ago
This seems tricky. I'm pretty sure the board can sell assets without approval, but dissolving the company or amending the articles would require shareholder approval.
upvoted 0 times
Lauryn
18 days ago
B) Selling substantially all of the corporation's assets.
upvoted 0 times
...
Ruby
21 days ago
A) Purchasing substantially all of the assets of another corporation.
upvoted 0 times
...
...
Andree
2 months ago
But what about amending the articles of incorporation? Can the board do that without stockholder approval?
upvoted 0 times
...
Coletta
2 months ago
I agree with you, Rashad. Dissolving the corporation is a major decision that the board can make on its own.
upvoted 0 times
...
Rashad
2 months ago
I think the board can dissolve the corporation without stockholder approval.
upvoted 0 times
...

Save Cancel