Question 1

Partnership income is taxed at the partnership income tax rate.

Accepted Answer

A) True 
 B)False

Question 2

Privately held corporations register shares with the Securities and Exchange Commission before selling them to shareholders.

Accepted Answer

A) True 
 B)False

Question 3

The balance sheet equation or accounting identity can be written as: assets equal liabilities minus owners' equity.

Accepted Answer

A) True 
 B)False

Question 4

Which one of the following alternatives is commonly used to reduce agency problems as they relate to corporate control?

Accepted Answer

A) stock options 
B) higher salaries 
C) larger perquisites ("perks") 
D) less restrictive accountability requirements 
A) stock options 
B) higher salaries 
C) larger perquisites ("perks") 
D) less restrictive accountability requirements

Question 5

Information about which accounting principles were used by the firm are included in the:

Accepted Answer

A) balance sheet 
B) footnotes 
C) management discussion on annual report 
D) none of the above 
A) balance sheet 
B) footnotes 
C) management discussion on annual report 
D) none of the above

Question 6

The Public Company Accounting Oversight Board (PCAOB)is

Accepted Answer

A) a not-for-profit corporation that oversees auditors of public corporations 
B) a not-for-profit corporation that oversees managers of public corporations 
C) a for-profit corporation that oversees auditors of public corporations 
D) a for-profit corporation that oversees managers of public corporations 
E) none of the above 
A) a not-for-profit corporation that oversees auditors of public corporations 
B) a not-for-profit corporation that oversees managers of public corporations 
C) a for-profit corporation that oversees auditors of public corporations 
D) a for-profit corporation that oversees managers of public corporations 
E) none of the above

Question 7

Ningbo Steel had year end 2010 and 2011 retained earnings balances of $5,000,000 and $6,000,000 respectively.The firm paid $100,000 of dividends in 2011.Based on this information,Ningbo Steel's net profit after taxes in 2011 was:

Accepted Answer

A) $100,000 
B) $900,000 
C) $1,000,000 
D) $1,200,000 
E) none of the above 
A) $100,000 
B) $900,000 
C) $1,000,000 
D) $1,200,000 
E) none of the above

Question 8

A partnership is a form of business organization when two or more people own a business operated for profit.

Accepted Answer

A) True 
 B)False

Question 9

The corporate form of organization is recognized in many countries.Which one of the following does not designate a corporation?

Accepted Answer

A) Inc. 
B) PLC 
C) AG 
D) SEC 
A) Inc. 
B) PLC 
C) AG 
D) SEC

Question 10

Most of accounting practice is based upon the cash concept.

Accepted Answer

A) True 
 B)False

Question 11

Current liabilities would not include:

Accepted Answer

A) accounts payable 
B) notes payable 
C) bonds 
D) accruals 
A) accounts payable 
B) notes payable 
C) bonds 
D) accruals

Question 12

One advantage of the corporate form of organization is the ease with which ownership may be transferred.

Accepted Answer

A) True 
 B)False

Question 13

A close estimate of market value added (MVA)is the market value of equity less the book value of equity.

Accepted Answer

A) True 
 B)False

Question 14

On the income statement,gross profit is defined as:

Accepted Answer

A) operating profits minus operating expenses 
B) gross profit minus operating expenses 
C) sales revenue minus cost of goods sold 
D) sales revenue minus operating expenses 
E) none of the above 
A) operating profits minus operating expenses 
B) gross profit minus operating expenses 
C) sales revenue minus cost of goods sold 
D) sales revenue minus operating expenses 
E) none of the above

Question 15

The U.S.federal government body that regulates the sale and listing of securities on U.S.financial markets is the:

Accepted Answer

A) IRS 
B) FRS 
C) SEC 
D) FBI 
E) none of the above 
A) IRS 
B) FRS 
C) SEC 
D) FBI 
E) none of the above

Question 16

What would be recorded in the common stock account on the balance sheet if 20,000 shares are issued at a par value of $2 and the market value is $5?

Accepted Answer

A) $20,000 
B) $40,000 
C) $30,000 
D) $60,000 
A) $20,000 
B) $40,000 
C) $30,000 
D) $60,000

Question 17

The Sarbanes-Oxley Act of 2002 was passed by the U.S.Congress in response several accounting scandals.

Accepted Answer

A) True 
 B)False

Question 18

The statement of retained earnings includes all of the following accounts within the statement except:

Accepted Answer

A) interest expense 
B) net profits after taxes 
C) preferred stock dividends 
D) common stock dividends 
E) all of the above are included 
A) interest expense 
B) net profits after taxes 
C) preferred stock dividends 
D) common stock dividends 
E) all of the above are included

Question 19

Cash flows from financing activities might include:

Accepted Answer

A) increase in notes payable 
B) increase in accounts payable 
C) depreciation 
D) all the above 
E) none of the above 
A) increase in notes payable 
B) increase in accounts payable 
C) depreciation 
D) all the above 
E) none of the above

Question 20

On the income statement,net profit after tax is defined as:

Accepted Answer

A) operating profit minus operating expenses 
B) operating profit minus cost of goods sold 
C) operating profit minus interest 
D) operating profit minus total expenses 
E) none of the above 
A) operating profit minus operating expenses 
B) operating profit minus cost of goods sold 
C) operating profit minus interest 
D) operating profit minus total expenses 
E) none of the above

Partnership income is taxed at the partnership income tax rate.

Privately held corporations register shares with the Securities and Exchange Commission before selling them to shareholders.

The balance sheet equation or accounting identity can be written as: assets equal liabilities minus owners' equity.

Which one of the following alternatives is commonly used to reduce agency problems as they relate to corporate control?

Information about which accounting principles were used by the firm are included in the:

The Public Company Accounting Oversight Board (PCAOB)is

Ningbo Steel had year end 2010 and 2011 retained earnings balances of $5,000,000 and $6,000,000 respectively.The firm paid $100,000 of dividends in 2011.Based on this information,Ningbo Steel's net profit after taxes in 2011 was:

A partnership is a form of business organization when two or more people own a business operated for profit.

The corporate form of organization is recognized in many countries.Which one of the following does not designate a corporation?

Most of accounting practice is based upon the cash concept.

Current liabilities would not include:

One advantage of the corporate form of organization is the ease with which ownership may be transferred.

A close estimate of market value added (MVA)is the market value of equity less the book value of equity.

On the income statement,gross profit is defined as:

The U.S.federal government body that regulates the sale and listing of securities on U.S.financial markets is the:

What would be recorded in the common stock account on the balance sheet if 20,000 shares are issued at a par value of $2 and the market value is $5?

The Sarbanes-Oxley Act of 2002 was passed by the U.S.Congress in response several accounting scandals.

The statement of retained earnings includes all of the following accounts within the statement except:

Cash flows from financing activities might include:

On the income statement,net profit after tax is defined as:

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

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Exam 13: Business Organization and Financial Data

Partnership income is taxed at the partnership income tax rate.

Privately held corporations register shares with the Securities and Exchange Commission before selling them to shareholders.

The balance sheet equation or accounting identity can be written as: assets equal liabilities minus owners' equity.

Which one of the following alternatives is commonly used to reduce agency problems as they relate to corporate control?

Information about which accounting principles were used by the firm are included in the:

The Public Company Accounting Oversight Board (PCAOB)is

Ningbo Steel had year end 2010 and 2011 retained earnings balances of $5,000,000 and $6,000,000 respectively.The firm paid $100,000 of dividends in 2011.Based on this information,Ningbo Steel's net profit after taxes in 2011 was:

A partnership is a form of business organization when two or more people own a business operated for profit.

The corporate form of organization is recognized in many countries.Which one of the following does not designate a corporation?

Most of accounting practice is based upon the cash concept.

Current liabilities would not include:

One advantage of the corporate form of organization is the ease with which ownership may be transferred.

A close estimate of market value added (MVA)is the market value of equity less the book value of equity.

On the income statement,gross profit is defined as:

The U.S.federal government body that regulates the sale and listing of securities on U.S.financial markets is the:

What would be recorded in the common stock account on the balance sheet if 20,000 shares are issued at a par value of $2 and the market value is $5?

The Sarbanes-Oxley Act of 2002 was passed by the U.S.Congress in response several accounting scandals.

The statement of retained earnings includes all of the following accounts within the statement except:

Cash flows from financing activities might include:

On the income statement,net profit after tax is defined as:

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters