Question 1

_____________ are/is the gross sales of a business during a period of time.

Accepted Answer

A)  Profits 
B)  Revenues 
C)  Net profit 
D)  Net income 
A)  Profits 
B)  Revenues 
C)  Net profit 
D)  Net income B

Question 2

Obligations that will not become due or payable for at least one year or not within the current operating cycle are known as:

Accepted Answer

A)  Short-term liabilities 
B)  Accounts payable 
C)  Accounts receivable 
D)  Long-term liabilities 
A)  Short-term liabilities 
B)  Accounts payable 
C)  Accounts receivable 
D)  Long-term liabilities D

Question 3

Estimated Income Tax is found on which financial statement?

Accepted Answer

A)  Balance Sheet 
B)  Income Statement 
C)  Statement of Owner's Equity 
D)  None of the above 
A)  Balance Sheet 
B)  Income Statement 
C)  Statement of Owner's Equity 
D)  None of the above B

Question 4

While most income statements cover a one-year interval, it is not uncommon to find monthly, quarterly, or semiannual income statements.Net income is the excess of revenue over expenses during the particular period under discussion.

Accepted Answer

A) True 
 B)False

Question 5

Copyrights and patents are regarded as:

Accepted Answer

A)  Tangible assets 
B)  Intangible assets 
C)  Intellectual assets 
D)  Temporary assets 
A)  Tangible assets 
B)  Intangible assets 
C)  Intellectual assets 
D)  Temporary assets

Question 6

Claims of the business against its customers for unpaid bal?ances from the sale of merchandise or the performance of services are recorded on the Balance Sheet as:

Accepted Answer

A)  Bills 
B)  Credit charges 
C)  Accounts payable 
D)  Accounts receivable 
A)  Bills 
B)  Credit charges 
C)  Accounts payable 
D)  Accounts receivable

Question 7

What are current liabilities as reflected on a balance sheet, explain the most common current liabilities?

Accepted Answer

Current liabilities are obliga

Question 8

The basic financial statements an owner-manager needs to be familiar with are the balance sheet and the income statement.

Accepted Answer

A) True 
 B)False

Question 9

The _______________ is a financial statement that shows the change that has occurred in a firm's position as a result of its operations over a specific period.

Accepted Answer

A)  Balance Sheet 
B)  Statement of Owner's Equity 
C)  Income Statement 
D)  Position Statement 
A)  Balance Sheet 
B)  Statement of Owner's Equity 
C)  Income Statement 
D)  Position Statement

Question 10

Preferred stock differs from common stock in that its holders have ____________________.

Accepted Answer

A)  Preference to the assets of the firm in case of dissolution. 
B)  Greater value per share. 
C)  Entitlement to two votes per share, rather than one. 
D)  All of the above 
A)  Preference to the assets of the firm in case of dissolution. 
B)  Greater value per share. 
C)  Entitlement to two votes per share, rather than one. 
D)  All of the above

Question 11

Which of the following is a common early warning sign of financial trouble?

Accepted Answer

A)  Needing to use credit 
B)  Regular turnover of inventory 
C)  Declining profits despite increased sales 
D)  All of the above 
A)  Needing to use credit 
B)  Regular turnover of inventory 
C)  Declining profits despite increased sales 
D)  All of the above

Question 12

Income statements always cover a one-year interval.

Accepted Answer

A) True 
 B)False

Question 13

In accounting terms, a debit indicates an increase in a liability account and a decrease in an asset (or income) account.

Accepted Answer

A) True 
 B)False

Question 14

Which of these is followed by U.S. as a nationwide accounting standard?

Accepted Answer

A)  Generally Accepted Accounting Principles (GAAP) 
B)  International Financial Reporting Standards (IFRS) 
C)  Both A & B 
D)  None of the above 
A)  Generally Accepted Accounting Principles (GAAP) 
B)  International Financial Reporting Standards (IFRS) 
C)  Both A & B 
D)  None of the above

Question 15

The income statement can be reduced to three primary categories. Which of the following is NOT one of them?

Accepted Answer

A)  Revenue 
B)  Net Income 
C)  Shareholder's Equity 
D)  Expenses 
A)  Revenue 
B)  Net Income 
C)  Shareholder's Equity 
D)  Expenses

Question 16

Liabilities are generally divided into two categories: short term and long term.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is NOT a common early warning sign of financial trouble

Accepted Answer

A)  Continual stretching of accounts receivable 
B)  Growing write-offs of uncollectible receivables 
C)  Increasing payables in relation to revenues 
D)  Decreasing interest expenses in relation to sales 
A)  Continual stretching of accounts receivable 
B)  Growing write-offs of uncollectible receivables 
C)  Increasing payables in relation to revenues 
D)  Decreasing interest expenses in relation to sales

Question 18

Explain how a business accounts for customers who do not pay for the goods or services they have received.

Accepted Answer

The business would first record the amou

Question 19

Owners' equity is equivalent to a firm's as¬sets.

Accepted Answer

A) True 
 B)False

Question 20

In order to determine the value of an asset, the owner-manager must do which of the following?

Accepted Answer

A)  Identify the resource 
B)  Provide a monetary measurement value of that resource's value 
C)  Establish the degree of ownership in the resource 
D)  All of the above 
A)  Identify the resource 
B)  Provide a monetary measurement value of that resource's value 
C)  Establish the degree of ownership in the resource 
D)  All of the above

_____________ are/is the gross sales of a business during a period of time.

Obligations that will not become due or payable for at least one year or not within the current operating cycle are known as:

Estimated Income Tax is found on which financial statement?

While most income statements cover a one-year interval, it is not uncommon to find monthly, quarterly, or semiannual income statements.Net income is the excess of revenue over expenses during the particular period under discussion.

Copyrights and patents are regarded as:

Claims of the business against its customers for unpaid bal?ances from the sale of merchandise or the performance of services are recorded on the Balance Sheet as:

What are current liabilities as reflected on a balance sheet, explain the most common current liabilities?

The basic financial statements an owner-manager needs to be familiar with are the balance sheet and the income statement.

The _______________ is a financial statement that shows the change that has occurred in a firm's position as a result of its operations over a specific period.

Preferred stock differs from common stock in that its holders have ____________________.

Which of the following is a common early warning sign of financial trouble?

Income statements always cover a one-year interval.

In accounting terms, a debit indicates an increase in a liability account and a decrease in an asset (or income) account.

Which of these is followed by U.S. as a nationwide accounting standard?

The income statement can be reduced to three primary categories. Which of the following is NOT one of them?

Liabilities are generally divided into two categories: short term and long term.

Which of the following is NOT a common early warning sign of financial trouble

Explain how a business accounts for customers who do not pay for the goods or services they have received.

Owners' equity is equivalent to a firm's as¬sets.

In order to determine the value of an asset, the owner-manager must do which of the following?

New Ventures: The Quiet Giant

Ideation: The Concept

Venture Choices

Marketing: The Customer

Legal Considerations: The Parameters

Strategic Pricing: The Hook

Startup Capital: The Injection

Financial Analysis: The Gauges

HR and the Development of Teams: The People

Successful Business Plans: The Compass

Scaling Ventures: The Future

Filters

Exam 8: Financial Statements: The Scorecard

_____________ are/is the gross sales of a business during a period of time.

Obligations that will not become due or payable for at least one year or not within the current operating cycle are known as:

Estimated Income Tax is found on which financial statement?

While most income statements cover a one-year interval, it is not uncommon to find monthly, quarterly, or semiannual income statements.Net income is the excess of revenue over expenses during the particular period under discussion.

Copyrights and patents are regarded as:

Claims of the business against its customers for unpaid bal?ances from the sale of merchandise or the performance of services are recorded on the Balance Sheet as:

What are current liabilities as reflected on a balance sheet, explain the most common current liabilities?

The basic financial statements an owner-manager needs to be familiar with are the balance sheet and the income statement.

The _______________ is a financial statement that shows the change that has occurred in a firm's position as a result of its operations over a specific period.

Preferred stock differs from common stock in that its holders have ____________________.

Which of the following is a common early warning sign of financial trouble?

Income statements always cover a one-year interval.

In accounting terms, a debit indicates an increase in a liability account and a decrease in an asset (or income) account.

Which of these is followed by U.S. as a nationwide accounting standard?

The income statement can be reduced to three primary categories. Which of the following is NOT one of them?

Liabilities are generally divided into two categories: short term and long term.

Which of the following is NOT a common early warning sign of financial trouble

Explain how a business accounts for customers who do not pay for the goods or services they have received.

Owners' equity is equivalent to a firm's as¬sets.

In order to determine the value of an asset, the owner-manager must do which of the following?

New Ventures: The Quiet Giant

Ideation: The Concept

Venture Choices

Marketing: The Customer

Legal Considerations: The Parameters

Strategic Pricing: The Hook

Startup Capital: The Injection

Financial Analysis: The Gauges

HR and the Development of Teams: The People

Successful Business Plans: The Compass

Scaling Ventures: The Future

Filters