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
QUESTION Anything you own or control, which you can exchange for some value is a(n) ________. a. liability b. asset c. retained earning d. equity ANSWER b
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
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 What is net profit? A) the amount of money a business has paid to its suppliers over one year B) the amount of money a business has in the bank at any one time C) the amount of money a business brings in from customers in one year D) the amount of money remaining […]
Date: September 3rd, 2020
QUESTION Giganto Corporation makes tanker ships and corn syrup. The company decides to get out of the tanker ship industry. This is an example of diversification. Indicate whether the statement is true or false ANSWER FALSE
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
