Be Accounting
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- 1.All profits go to the owner is an advantage of sole proprietorship.
- A.
True
- B.
False
- 2.
- A.
Cable bill
- B.
Mortgage
- C.
Accounts recievable
- D.
Car
- 3.The accounting equation is ____________________
- A.
Revenue - expenses = Net income
- B.
Assets + Liabilities = Owner's Equity
- C.
Assets - Liabilities = Owner's Equity
- D.
Liabilities + Owner's Equity = Assets
- 4.Owner's Equity is the owner's claims to the business' cash only.
- A.
True
- B.
False
- 5.The following are Types of businesses.
- A.
Service, Merchandising, Manufacturing
- B.
Service, Sole Proprietorship, Manufacturing
- C.
Sole Proprietorship, Partnership, Corporation
- D.
Assets, Expenses, Income
- 6.The amount of money earned after the costs of operating a business are paid is_____________.
- A.
Revenue
- B.
Income
- C.
Profit
- D.
Capital
- 7.Which of the following would NOT be considered a service business?
- A.
General Motors
- B.
North American Van Lines
- C.
Delta Airlines
- D.
Alamo Rent A Car
- 8.The most common form of business organization is the ________________.
- A.
Partnership
- B.
Sole proprietorship
- C.
Corporation
- D.
Not-for-profit
- 9.The 3 forms of businesses (ownership structures) are:
- A.
Revenue, profit, income
- B.
Service, Manufacturing, Corporation
- C.
Sole proprietorship, Partnership, Corporation
- D.
Partnership, Withdrawal, Owner's equity
- 10.A service business __________
- A.
Has only one owner
- B.
Never earns a profit
- C.
Buys raw materials, uses labor and machinery to transforms them into finished products
- D.
Provides a needed service for a fee
- 11.A merchandising business _______________.
- A.
Bakes bread and packages it for the grocery store
- B.
Buys finished products and resells them to individuals or other businesses
- C.
Does not need accountants
- D.
Buys raw materials, uses labor and machinery to transforms them into finished products
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