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
QUESTION A portfolio is a collection of several different types of investments. Indicate whether the statement is true or false ANSWER TRUE
Date: September 3rd, 2020
QUESTION In the equation for calculating a company’s net profit, what do expenses refer to? A) the invoices sent to the company by the suppliers it is buying from B) the cash flowing out of the company during the current period C) the amount of money the company spent on something during a certain time […]
Date: September 3rd, 2020
QUESTION Vertical diversification is the situation in which you have assets that address different aspects of the same situation. Indicate whether the statement is true or false ANSWER FALSE
Date: September 3rd, 2020
QUESTION When does a company record its expenses? A) when the company receives a bill B) when the company pays a bill C) when the company’s supplier has put a bill in the mail D) when the company decides to purchase something ANSWER A
Date: September 3rd, 2020
QUESTION What is another term for income statement? A) profit and loss statement B) general ledger statement C) business value statement D) revenue and expense statement ANSWER A
Date: September 3rd, 2020
QUESTION An income statement measures A) a company’s budget for the coming year and the resources needed to fund the projects in the budget. B) a company’s cash flow recorded over the course of one year of selling to customers. C) a company’s net profit by tracking the firm’s revenues and expenses during a given […]
Date: September 3rd, 2020
QUESTION Mergers and acquisitions are different methods to diversify risk. Indicate whether the statement is true or false ANSWER TRUE
Date: September 3rd, 2020
