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
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
QUESTION In your business, you record revenue when money comes in from customers, and record expenses when you pay bills. What basis of accounting are you using? A) cash B) income C) accrual D) debit ANSWER A
Date: September 3rd, 2020
QUESTION Owners’ equity can be also known as ________ equity. a. current b. long-term c. shareholders’ d. asset ANSWER c
Date: September 3rd, 2020
QUESTION In your business, you record income when you deliver a good or provide a service, and record expenses when they are incurred, not necessarily when you pay the bills. What basis of accounting are you using? A) cash B) income C) accrual D) debit ANSWER C
Date: September 3rd, 2020
QUESTION When a company borrows money that it has a legal obligation to repay, the company is using equity financing. Indicate whether the statement is true or false ANSWER FALSE
Date: September 3rd, 2020
QUESTION You are a car dealer. Which of the following would your cost of revenue consist of? A) rent paid to the owner of your building B) amounts spent on utilities C) money paid for administrative salaries D) purchase of cars for resale ANSWER D
Date: September 3rd, 2020
QUESTION Which of the following companies is in the service business? A) a company that rents cars B) a company that sells consumer products C) a company that makes medical devices D) a company that manufacturers military equipment ANSWER A
Date: September 3rd, 2020
