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 […]
Date: September 3rd, 2020
QUESTION What are external conditions that can assist the company in achieving its objective? a. weaknesses b. strengths c. threats d. opportunities ANSWER d
Date: September 3rd, 2020
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
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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
Date: September 3rd, 2020
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
Date: September 3rd, 2020
QUESTION Risk affects ________. a. neither your personal nor your business life b. both your personal and your business lives c. only your business life and not your personal life d. only your personal life and not your business life ANSWER b
Date: September 3rd, 2020
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
Date: September 3rd, 2020
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
Date: September 3rd, 2020
QUESTION Which two types of income statements are allowed under GAAP? A) cash and accrual B) inflow and outflow C) credit and debit D) receivable and payable ANSWER A
Date: September 3rd, 2020
