Question 1

A firm's net income over some period is the same as its cash flow.

Accepted Answer

A) True 
 B)False  False

Question 2

A limited liability company (LLC):

Accepted Answer

A) must register with the SEC to sell securities to the public 
B) is an ongoing entity, even if one of the owners leaves 
C) has a limited number of shareholders 
D) all the above 
E) none of the above 
A) must register with the SEC to sell securities to the public 
B) is an ongoing entity, even if one of the owners leaves 
C) has a limited number of shareholders 
D) all the above 
E) none of the above E

Question 3

Which form of business organization has a basic weakness of reaching araising capital limit?

Accepted Answer

A) proprietorship 
B) partnership 
C) limited partnership 
D) all of the above 
A) proprietorship 
B) partnership 
C) limited partnership 
D) all of the above D

Question 4

Financial statements that must be included in the annual report include all of the following EXCEPT:

Accepted Answer

A) the income statement 
B) the balance sheet 
C) the statement of cash flows 
D) the cash budget 
E) all of the above must be included 
A) the income statement 
B) the balance sheet 
C) the statement of cash flows 
D) the cash budget 
E) all of the above must be included

Question 5

Accounting practices and procedures used to prepare financial statements are called:

Accepted Answer

A) GAAP 
B) FASB 
C) SEC 
D) Federal Reserve System 
E) none of the above 
A) GAAP 
B) FASB 
C) SEC 
D) Federal Reserve System 
E) none of the above

Question 6

86.	Ningbo Steel had year end 2011 and 2012 retained earnings balances of $5,000,000 and $6,000,000 respectively.  The firm paid $100,000 of dividends in 2012.  Based on this information, Ningbo Steel’s net profit after taxes in 2012 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

Question 7

Of the following forms of business organization, which have stockholders with limited liability?

Accepted Answer

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

Question 8

Under partnership law, each partner has unlimited liability for all the debts of the firm.

Accepted Answer

A) True 
 B)False

Question 9

The notes receivable payable of a firm may be:

Accepted Answer

A) loans to other businesses 
B) loans to employeesfrom a bank 
C) loans to the CEOmoney owed by a customer 
D) all of the above 
A) loans to other businesses 
B) loans to employeesfrom a bank 
C) loans to the CEOmoney owed by a customer 
D) all of the above

Question 10

The average tax rate on a corporation with $75,000 in income and a tax liability of $15,000 is:

Accepted Answer

A) 15% 
B) 20% 
C) 25% 
D) 39% 
A) 15% 
B) 20% 
C) 25% 
D) 39%

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is a source of cash?

Accepted Answer

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

Question 13

Limited partners face liability limited to their investment in the firm, but they can participate in the operations of the firm.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following business organizations limit the liability of some or all of their owners to the extent of their investment in the company?

Accepted Answer

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

Question 15

All of the following forms of organization are taxed at the owners' personal tax rate EXCEPT:

Accepted Answer

A) proprietorship 
B) LLC 
C) subchapter S corporation 
D) partnership 
E) all of the above assess taxes at the owners' personal rate 
A) proprietorship 
B) LLC 
C) subchapter S corporation 
D) partnership 
E) all of the above assess taxes at the owners' personal rate

Question 16

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 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

The 2002 Sarbanes-Oxley Act was designed to:

Accepted Answer

A) limit the compensation that could be paid to CEOs. 
B) eliminate the many disclosure and conflict of interest problems of corporations 
C) provide uniform international accounting standards 
D) two of the above 
E) none of the above 
A) limit the compensation that could be paid to CEOs. 
B) eliminate the many disclosure and conflict of interest problems of corporations 
C) provide uniform international accounting standards 
D) two of the above 
E) none of the above

Question 19

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 20

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 cumulative total of earnings reinvested in the firm. 
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 cumulative total of earnings reinvested in the firm. 
E) none of the above

A firm's net income over some period is the same as its cash flow.

A limited liability company (LLC):

Which form of business organization has a basic weakness of reaching araising capital limit?

Financial statements that must be included in the annual report include all of the following EXCEPT:

Accounting practices and procedures used to prepare financial statements are called:

86. Ningbo Steel had year end 2011 and 2012 retained earnings balances of $5,000,000 and $6,000,000 respectively. The firm paid $100,000 of dividends in 2012. Based on this information, Ningbo Steel’s net profit after taxes in 2012 was:

Of the following forms of business organization, which have stockholders with limited liability?

Under partnership law, each partner has unlimited liability for all the debts of the firm.

The notes receivable payable of a firm may be:

The average tax rate on a corporation with $75,000 in income and a tax liability of $15,000 is:

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

Which of the following is a source of cash?

Limited partners face liability limited to their investment in the firm, but they can participate in the operations of the firm.

Which of the following business organizations limit the liability of some or all of their owners to the extent of their investment in the company?

All of the following forms of organization are taxed at the owners' personal tax rate EXCEPT:

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

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.

The 2002 Sarbanes-Oxley Act was designed to:

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:

On the balance sheet, retained earnings represents

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

A firm's net income over some period is the same as its cash flow.

A limited liability company (LLC):

Which form of business organization has a basic weakness of reaching araising capital limit?

Financial statements that must be included in the annual report include all of the following EXCEPT:

Accounting practices and procedures used to prepare financial statements are called:

86. Ningbo Steel had year end 2011 and 2012 retained earnings balances of $5,000,000 and $6,000,000 respectively. The firm paid $100,000 of dividends in 2012. Based on this information, Ningbo Steel’s net profit after taxes in 2012 was:

Of the following forms of business organization, which have stockholders with limited liability?

Under partnership law, each partner has unlimited liability for all the debts of the firm.

The notes receivable payable of a firm may be:

The average tax rate on a corporation with $75,000 in income and a tax liability of $15,000 is:

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

Which of the following is a source of cash?

Limited partners face liability limited to their investment in the firm, but they can participate in the operations of the firm.

Which of the following business organizations limit the liability of some or all of their owners to the extent of their investment in the company?

All of the following forms of organization are taxed at the owners' personal tax rate EXCEPT:

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

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.

The 2002 Sarbanes-Oxley Act was designed to:

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:

On the balance sheet, retained earnings represents

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