QUESTION A legal obligation that an individual or company has to pay back is a(n) _______, a. inventory b. liability c. owners’ equity d. asset ANSWER b
Date: September 3rd, 2020
QUESTION The goal of a not-for-profit organization is to A) eventually advance to 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 benefit corporations. ANSWER C
Date: September 3rd, 2020
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 Revenue is recorded A) only after payment for a sale has been received by the company. B) when a sale is made, but not necessarily when payment for the sale is received. C) as soon as a customer has expressed interest in placing an order with a company. D) when a customer approves the […]
Date: September 3rd, 2020
QUESTION What are operating expenses? A) amounts incurred by a company for expenses directly related to sale of a product B) amounts a company pays for expenses not directly related to the sale of its product C) unavoidable expenses that a company incurs when it generates reports on its financial dealings D) costs incurred only […]
Date: September 3rd, 2020
QUESTION A bond is an agreement to lend money that will be repaid at a later date. Indicate whether the statement is true or false ANSWER TRUE
Date: September 3rd, 2020
