Question 1

For a given accounting period,which of the following is likely to represent primarily variable costs?

Accepted Answer

A) cost of goods sold 
B) general and administrative expenses 
C) depreciation expense 
D) interest expense 
A) cost of goods sold 
B) general and administrative expenses 
C) depreciation expense 
D) interest expense

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

A business should begin with a vision or mission statement that is consistent with the planned overall strategy.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a source of cash?

Accepted Answer

A) an increase in an asset account 
B) a decrease in an asset account 
C) a decrease in a liability account 
D) a decrease in an equity account 
E) none of the above 
A) an increase in an asset account 
B) a decrease in an asset account 
C) a decrease in a liability account 
D) a decrease in an equity account 
E) none of the above

Question 5

The most desirable form of business organization from a liquidity standpoint is a corporation.

Accepted Answer

A) True 
 B)False

Question 6

A corporation is a legal entity created under federal law with an unending life and limited financial liability to its owners.

Accepted Answer

A) True 
 B)False

Question 7

Market value added would equal:

Accepted Answer

A) assets plus liabilities 
B) assets minus liabilities 
C) common stock price times number of shares outstanding 
D) none of the above 
A) assets plus liabilities 
B) assets minus liabilities 
C) common stock price times number of shares outstanding 
D) none of the above

Question 8

If a firm issues 10,000 shares of common stock with a par value of $5 and for a sales price of $15,what amount would be recorded in the paid-in capital account?

Accepted Answer

A) $10,000 
B) $15,000 
C) $50,000 
D) $100,000 
A) $10,000 
B) $15,000 
C) $50,000 
D) $100,000

Question 9

The goal of a business should be:

Accepted Answer

A) maximization of the owners' wealth 
B) maximization of accounting profit 
C) maximization of sales 
D) maximization of assets 
A) maximization of the owners' wealth 
B) maximization of accounting profit 
C) maximization of sales 
D) maximization of assets

Question 10

Of the following forms of business organization,which have the advantage of limited liability but no stockholders?

Accepted Answer

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

Question 11

Which of the following would not be a source of funds?

Accepted Answer

A) decrease in an equity account 
B) increase in a liability account 
C) decrease in an asset account 
D) all the above are sources of funds 
A) decrease in an equity account 
B) increase in a liability account 
C) decrease in an asset account 
D) all the above are sources of funds

Question 12

On the balance sheet,retained earnings represents

Accepted Answer

A) net profits for the current year 
B) net profits for the current year minus preferred stock dividends 
C) cash reinvested in fixed assets to support growth 
D) the total of earnings reinvested in the firm for the current year 
E) none of the above 
A) net profits for the current year 
B) net profits for the current year minus preferred stock dividends 
C) cash reinvested in fixed assets to support growth 
D) the total of earnings reinvested in the firm for the current year 
E) none of the above

Question 13

Limited partners must take an active role in the operations of the firm.

Accepted Answer

A) True 
 B)False

Question 14

The most desirable form of business organization from a liquidity standpoint is a limited liability company.

Accepted Answer

A) True 
 B)False

Question 15

Corporate stockholders:

Accepted Answer

A) cannot have limited liability 
B) cannot easily transfer ownership 
C) cannot be subject to taxes on dividends 
D) can limit their liability to the amount of their investment 
A) cannot have limited liability 
B) cannot easily transfer ownership 
C) cannot be subject to taxes on dividends 
D) can limit their liability to the amount of their investment

Question 16

With generally accepted accounting practices,there is one "right way" of accounting for business transactions.

Accepted Answer

A) True 
 B)False

Question 17

Market value added can be written as: the market value of stock plus the market value of debt minus the book value of stock minus the book value of debt.

Accepted Answer

A) True 
 B)False

Question 18

Poison pills are provisions in a corporate charter that make a corporate take-over more unattractive.

Accepted Answer

A) True 
 B)False

Question 19

The goal of the firm is the maximization of profits and market share.

Accepted Answer

A) True 
 B)False

Question 20

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

For a given accounting period,which of the following is likely to represent primarily variable costs?

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

A business should begin with a vision or mission statement that is consistent with the planned overall strategy.

Which of the following is a source of cash?

The most desirable form of business organization from a liquidity standpoint is a corporation.

A corporation is a legal entity created under federal law with an unending life and limited financial liability to its owners.

Market value added would equal:

If a firm issues 10,000 shares of common stock with a par value of $5 and for a sales price of $15,what amount would be recorded in the paid-in capital account?

The goal of a business should be:

Of the following forms of business organization,which have the advantage of limited liability but no stockholders?

Which of the following would not be a source of funds?

On the balance sheet,retained earnings represents

Limited partners must take an active role in the operations of the firm.

The most desirable form of business organization from a liquidity standpoint is a limited liability company.

Corporate stockholders:

With generally accepted accounting practices,there is one "right way" of accounting for business transactions.

Market value added can be written as: the market value of stock plus the market value of debt minus the book value of stock minus the book value of debt.

Poison pills are provisions in a corporate charter that make a corporate take-over more unattractive.

The goal of the firm is the maximization of profits and market share.

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:

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

For a given accounting period,which of the following is likely to represent primarily variable costs?

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

A business should begin with a vision or mission statement that is consistent with the planned overall strategy.

Which of the following is a source of cash?

The most desirable form of business organization from a liquidity standpoint is a corporation.

A corporation is a legal entity created under federal law with an unending life and limited financial liability to its owners.

Market value added would equal:

If a firm issues 10,000 shares of common stock with a par value of $5 and for a sales price of $15,what amount would be recorded in the paid-in capital account?

The goal of a business should be:

Of the following forms of business organization,which have the advantage of limited liability but no stockholders?

Which of the following would not be a source of funds?

On the balance sheet,retained earnings represents

Limited partners must take an active role in the operations of the firm.

The most desirable form of business organization from a liquidity standpoint is a limited liability company.

Corporate stockholders:

With generally accepted accounting practices,there is one "right way" of accounting for business transactions.

Market value added can be written as: the market value of stock plus the market value of debt minus the book value of stock minus the book value of debt.

Poison pills are provisions in a corporate charter that make a corporate take-over more unattractive.

The goal of the firm is the maximization of profits and market share.

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:

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