Bus 121 Part 2

6 Questions

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Bus Quizzes & Trivia

Practice final quiz


Questions and Answers
  • 1. 
    Which of the following statements would a follower of Adam Smith be most likely to make?
    • A. 

      The federal government should use its ability to spend and tax to guide the decisions of a business and consumers.

    • B. 

      Market economies are flawed because they put too much emphasis on economic growth not enough on environmental problems.

    • C. 

      Overpopulation is the main danger confroting modern economies.

    • D. 

      If people are give the freedom to follow their own interests, they will end up promoting economical growth that benefits society as a whole.

  • 2. 
    Limited partnerships are just like general partnerships, except that they are organized to operate as a going concern for only limited time period.
    • A. 

      True

    • B. 

      False

  • 3. 
    11. If a firm has 100K in assets and liabilities of 62K, then the owner's equity is equal to 162,000.
    • A. 

      T

    • B. 

      F

  • 4. 
    A basic difference between managerial accounting and financial accounting is that managerial accounting:
    • A. 

      Adheres to rules set by the GASB, while financial accounting uses different group of rules set by the FASB

    • B. 

      Involves the preparation of the balance sheet and income statement while financial accounting involves the preparations of the statement of cash flows.

    • C. 

      Handles recordinbg and classifying information about transactions that have no direct financial impart of the firm, while financial accounting handles the recording and classifying of information about transactions that do have a financial impact.

    • D. 

      Provides information primarily intended for managers and others inside the company, while financial accounting provides information primarily intended for people outside the organization

  • 5. 
    An unsecured corporate bond is know as a debenture bond.
    • A. 

      T

    • B. 

      F

  • 6. 
    A stock split immediately increases the value of an investor's holdings.
    • A. 

      T

    • B. 

      F