Exam 1: Business: Whats It All About

Assume 2011 is the company's first year of business and there were no dividends declared in 2011. Determine the missing amounts,1.Expenses.2.Net income and 3.Liabilities,in the condensed income statement and balance sheet for the year ended December 31,2011.

Double taxation occurs because businesses pay ________.

Examine the balance sheet for Out of Africa.Make any changes that you believe are necessary for a proper presentation,and then prepare a corrected balance sheet.

Which type of business organization exposes its owner(s)to unlimited liability?

Profit is the difference between sales and revenues.

In a corporation,dividends distributed to owners are treated as expenses.

The notes to financial statements (also called footnotes)are an integral part of the financial statements and help users to understand what is in the statements.

Comparative balance sheets ________.

What are the four financial statements? What information does each provide?

Revenues include ________.

The stock exchange is ________.

A corporation ________.

What is the purpose of a business?

Match each of the following with the appropriate definitions. -A financial statement that reports the financial position of the company at a point in time.

The owners of a corporation are called ________.

Wok 'N' Roll,Inc.,has assets of $500,000 and liabilities of $350,000.Calculate the amount of shareholder's equity.

Use this financial statement to answer the following question: The Inventory balance (A above)equals ________.

The statement of cash flows is divided into three sections: operating,investing,and financing.

Huntington Bank is an example of a ________ firm.

Wal-Mart is an example of a service corporation.