c. 3
d. 1 or 3
32. A " secret reserve " will be created if
a. inadequate depreciation is charged to income.
b. a capital expenditure is charged to expense.
c. liabilities are understated.
d. stockholders ' equity is overstated.
P33. Which of the following represents the total number of shares that a corporation may issue under the terms of its charter?
a. authorized shares
b. issued shares