QUESTION What is an investing activity? A) an activity that entails the purchase of assets that could increase a company’s profitability B) an activity that requires upgrades to a company’s information technology system C) an activity that uses or generates cash to keep a company’s daily operations going D) an activity that involves cash exchanges […]
QUESTION Why is that large businesses that have a lot of accounts receivable and payable cannot use the cash basis of accounting? A) It doesn’t give them an accurate picture of their net profits for a set period. B) The law says that such business cannot use the cash basis of accounting. C) The cash […]
QUESTION What are external conditions that can assist the company in achieving its objective? a. weaknesses b. strengths c. threats d. opportunities ANSWER d
QUESTION The greater the risk, the ________ difference between a favorable or unfavorable outcome. a. less important is the b. more likely there is no c. larger the d. smaller the ANSWER c
QUESTION What is a financial activity? A) an activity that entails the purchase of assets that could increase a company’s profitability B) an activity that requires upgrades to a company’s information technology system C) an activity that uses or generates cash to keep a company’s daily operations going D) an activity that involves cash exchanges […]
QUESTION Which financial statement answers the question “Is my company making a profit”? A) the balance sheet B) the general ledger C) the cash flow statement D) the income statement ANSWER D
QUESTION A major customer looking for a new company for its advertising campaign is an example of a(n) ________. a. strength b. opportunity c. threat d. weakness ANSWER b
QUESTION ________ consist of credit that is extended to a business for necessary purchases. a. Accounts receivable b. Accounts payable c. Intangible assets d. Retained earnings ANSWER b
QUESTION The assets you keep after you have paid off all your liabilities make up your ________. a. current assets b. net worth c. balance sheet d. long-term assets ANSWER b
QUESTION The goal of a for-profit organization is to A) eventually advance to not-for-profit status. B) earn a profit for its owners. C) use any money it makes to further the cause or association it promotes. D) deliver products or services that only benefit charities. ANSWER B
