Question 1

4A 16.Limited partners must take an active role in the operations of the firm.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

One of the important reasons corporations can accumulate large sums of capital is that they are allowed to sell capital stock.

Accepted Answer

A) True 
 B)False

Question 5

Suppose Ningbo Steel had sales revenue of $1011,000 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) $1,500600 
B) $1,000 
C) $500 
D) $0 
E) none of the above 
A) $1,500600 
B) $1,000 
C) $500 
D) $0 
E) none of the above

Question 6

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

Accepted Answer

A) accounts receivable 
B) accounts payable 
C) accruals 
D) notes payable 
E) all of the above are current liabilities 
A) accounts receivable 
B) accounts payable 
C) accruals 
D) notes payable 
E) all of the above are current liabilities

Question 7

Which of the following forms of organization has an unlimited life?

Accepted Answer

A) proprietorship 
B) LLC 
C) subchapter S corporation 
D) corporation 
E) two of the above have an unlimited lifecorporation and subchapter S corporation 
A) proprietorship 
B) LLC 
C) subchapter S corporation 
D) corporation 
E) two of the above have an unlimited lifecorporation and subchapter S corporation

Question 8

In the statement of cash flows, changes in retained earnings are reported as two separate line items, which are __________ and ___________.

Accepted Answer

A) revenues and expenses 
B) assets and liabilities 
C) depreciation and amortization 
D) net profits and dividends 
E) none of the above 
A) revenues and expenses 
B) assets and liabilities 
C) depreciation and amortization 
D) net profits and dividends 
E) none of the above

Question 9

The depreciation method currently used for tax purposes today is called the:

Accepted Answer

A) accelerated cost recovery system (ACRS) 
B) straight line method (SLM) 
C) modified accelerated cost recovery system (MACRS) 
D) double digit balance (DD
B)  
E) none of the above 
A) accelerated cost recovery system (ACRS) 
B) straight line method (SLM) 
C) modified accelerated cost recovery system (MACRS) 
D) double digit balance (DD
B)  
E) none of the above

Question 10

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 11

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

Accepted Answer

A) True 
 B)False

4A 16.Limited partners must take an active role in the operations of the firm.

The goal of a business should be:

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

One of the important reasons corporations can accumulate large sums of capital is that they are allowed to sell capital stock.

Suppose Ningbo Steel had sales revenue of $1011,000 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:

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

Which of the following forms of organization has an unlimited life?

In the statement of cash flows, changes in retained earnings are reported as two separate line items, which are and _.

The depreciation method currently used for tax purposes today is called the:

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

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

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

Exam 13: Business Organization and Financial Data

4A 16.Limited partners must take an active role in the operations of the firm.

The goal of a business should be:

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

One of the important reasons corporations can accumulate large sums of capital is that they are allowed to sell capital stock.

Suppose Ningbo Steel had sales revenue of $1011,000 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:

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

Which of the following forms of organization has an unlimited life?

In the statement of cash flows, changes in retained earnings are reported as two separate line items, which are __________ and ___________.

The depreciation method currently used for tax purposes today is called the:

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

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

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

In the statement of cash flows, changes in retained earnings are reported as two separate line items, which are and _.