Question 1

Profits from a proprietorship are taxed at the corporate income tax rates.

Accepted Answer

A) True 
 B)False

Question 2

On the income statement,gross profit is defined as:

Accepted Answer

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

Question 3

The Public Company Accounting Oversight Board (PCAOB)is

Accepted Answer

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

Question 4

The most desirable form of business organization in terms of ease of start-up is a corporation.

Accepted Answer

A) True 
 B)False

Question 5

Of the following forms of organization,which businesses are the greatest in numbers?

Accepted Answer

A) proprietorships 
B) partnerships 
C) corporations 
D) limited partnerships 
A) proprietorships 
B) partnerships 
C) corporations 
D) limited partnerships

Question 6

Which of the following are considered to be major financial management functions?

Accepted Answer

A) financial planning and analysis 
B) asset management 
C) raising funds 
D) all of the above 
A) financial planning and analysis 
B) asset management 
C) raising funds 
D) all of the above

Question 7

A statement that expresses the income statement items as a percent of total sales is called:

Accepted Answer

A) a percentage of sales income statement 
B) a cross-sectional income statement 
C) a common size income statement 
D) a ratio based income statement 
E) none of the above 
A) a percentage of sales income statement 
B) a cross-sectional income statement 
C) a common size income statement 
D) a ratio based income statement 
E) none of the above

Question 8

All of the following accounts are considered to be current assets on the balance sheet except:

Accepted Answer

A) cash 
B) short-term investments or marketable securities 
C) accounts receivable 
D) inventory 
E) all of the above are current assets 
A) cash 
B) short-term investments or marketable securities 
C) accounts receivable 
D) inventory 
E) all of the above are current assets

Question 9

Suppose Ningbo Steel had sales revenue of $10,000 sales revenue,cost of goods sold of $5,000,operating expenses of $3000,interest expense of $1,000,a tax rate of 20%,and 1,000 shares of common stock outstanding.Based on this information,earnings per share was:

Accepted Answer

A) $1.20 
B) $1.00 
C) $0.80 
D) $0.40 
E) none of the above 
A) $1.20 
B) $1.00 
C) $0.80 
D) $0.40 
E) none of the above

Question 10

A limited partnership is comprised of:

Accepted Answer

A) only limited partners 
B) only general partners 
C) both general and limited partners 
D) both partners and proprietors 
A) only limited partners 
B) only general partners 
C) both general and limited partners 
D) both partners and proprietors

Question 11

The _______________ established the Public Company Accounting Oversight Board (PCAOB).

Accepted Answer

A) Smoot-Hawley Act 
B) Sarbanes-Oxley Act 
C) Gram-Harkins Act 
D) McKean-Obama Act 
E) none of the above 
A) Smoot-Hawley Act 
B) Sarbanes-Oxley Act 
C) Gram-Harkins Act 
D) McKean-Obama Act 
E) none of the above

Question 12

A weakness for a proprietorship is that owner's liability for debts of the firm is unlimited.

Accepted Answer

A) True 
 B)False

Question 13

Suppose Ningbo Steel had sales revenue of $10,000 sales revenue,cost of goods sold of $5,000,operating expenses of $3000,interest expense of $1,000,a tax rate of 20%,and 1,000 shares of common stock outstanding.Based on this information,net profit after tax was:

Accepted Answer

A) $1,200 
B) $1,000 
C) $800 
D) $400 
E) none of the above 
A) $1,200 
B) $1,000 
C) $800 
D) $400 
E) none of the above

Question 14

Shareholder wealth may be defined as the price of a company's stock times the number of shares outstanding.

Accepted Answer

A) True 
 B)False

Question 15

The term ___________ conveys a relationship of equality between the assets of the business and the sources of funds for their acquisition.

Accepted Answer

A) statement of cash flows 
B) cash transactions statement 
C) income statement 
D) balance sheet 
A) statement of cash flows 
B) cash transactions statement 
C) income statement 
D) balance sheet

Question 16

For corporations,the principal-agent relationship usually refers to the relationship between:

Accepted Answer

A) buyers-sellers 
B) owners-managers 
C) manager-customer 
D) owner-bankers 
A) buyers-sellers 
B) owners-managers 
C) manager-customer 
D) owner-bankers

Question 17

All of the following accounts are considered to be current assets on the balance sheet except:

Accepted Answer

A) cash 
B) accruals 
C) accounts receivable 
D) inventory 
E) none of the above 
A) cash 
B) accruals 
C) accounts receivable 
D) inventory 
E) none of the above

Question 18

Suppose Ningbo Steel had sales revenue of $10,000 sales revenue,cost of goods sold of $5,000,operating expenses of $3000,interest expense of $1,000,a tax rate of 20%,and 1,000 shares of common stock outstanding.Based on this information,earnings per share was:

Accepted Answer

A) $2.00 
B) $1.00 
C) $0.50 
D) $0.0 
E) none of the above 
A) $2.00 
B) $1.00 
C) $0.50 
D) $0.0 
E) none of the above

Question 19

Common-size financial statements express balance sheet and income statement numbers as a percent of sales.

Accepted Answer

A) True 
 B)False

Question 20

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

Profits from a proprietorship are taxed at the corporate income tax rates.

On the income statement,gross profit is defined as:

The Public Company Accounting Oversight Board (PCAOB)is

The most desirable form of business organization in terms of ease of start-up is a corporation.

Of the following forms of organization,which businesses are the greatest in numbers?

Which of the following are considered to be major financial management functions?

A statement that expresses the income statement items as a percent of total sales is called:

All of the following accounts are considered to be current assets on the balance sheet except:

Suppose Ningbo Steel had sales revenue of $10,000 sales revenue,cost of goods sold of $5,000,operating expenses of $3000,interest expense of $1,000,a tax rate of 20%,and 1,000 shares of common stock outstanding.Based on this information,earnings per share was:

A limited partnership is comprised of:

The _______________ established the Public Company Accounting Oversight Board (PCAOB).

A weakness for a proprietorship is that owner's liability for debts of the firm is unlimited.

Suppose Ningbo Steel had sales revenue of $10,000 sales revenue,cost of goods sold of $5,000,operating expenses of $3000,interest expense of $1,000,a tax rate of 20%,and 1,000 shares of common stock outstanding.Based on this information,net profit after tax was:

Shareholder wealth may be defined as the price of a company's stock times the number of shares outstanding.

The term ___________ conveys a relationship of equality between the assets of the business and the sources of funds for their acquisition.

For corporations,the principal-agent relationship usually refers to the relationship between:

All of the following accounts are considered to be current assets on the balance sheet except:

Suppose Ningbo Steel had sales revenue of $10,000 sales revenue,cost of goods sold of $5,000,operating expenses of $3000,interest expense of $1,000,a tax rate of 20%,and 1,000 shares of common stock outstanding.Based on this information,earnings per share was:

Common-size financial statements express balance sheet and income statement numbers as a percent of sales.

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

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

Profits from a proprietorship are taxed at the corporate income tax rates.

On the income statement,gross profit is defined as:

The Public Company Accounting Oversight Board (PCAOB)is

The most desirable form of business organization in terms of ease of start-up is a corporation.

Of the following forms of organization,which businesses are the greatest in numbers?

Which of the following are considered to be major financial management functions?

A statement that expresses the income statement items as a percent of total sales is called:

All of the following accounts are considered to be current assets on the balance sheet except:

Suppose Ningbo Steel had sales revenue of $10,000 sales revenue,cost of goods sold of $5,000,operating expenses of $3000,interest expense of $1,000,a tax rate of 20%,and 1,000 shares of common stock outstanding.Based on this information,earnings per share was:

A limited partnership is comprised of:

The _______________ established the Public Company Accounting Oversight Board (PCAOB).

A weakness for a proprietorship is that owner's liability for debts of the firm is unlimited.

Suppose Ningbo Steel had sales revenue of $10,000 sales revenue,cost of goods sold of $5,000,operating expenses of $3000,interest expense of $1,000,a tax rate of 20%,and 1,000 shares of common stock outstanding.Based on this information,net profit after tax was:

Shareholder wealth may be defined as the price of a company's stock times the number of shares outstanding.

The term ___________ conveys a relationship of equality between the assets of the business and the sources of funds for their acquisition.

For corporations,the principal-agent relationship usually refers to the relationship between:

All of the following accounts are considered to be current assets on the balance sheet except:

Suppose Ningbo Steel had sales revenue of $10,000 sales revenue,cost of goods sold of $5,000,operating expenses of $3000,interest expense of $1,000,a tax rate of 20%,and 1,000 shares of common stock outstanding.Based on this information,earnings per share was:

Common-size financial statements express balance sheet and income statement numbers as a percent of sales.

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

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