Foundations Of Business Quiz: Accounting

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  • 1/34 Questions
    Memorandum is all the _____ of sales made.  - ProProfs

    Memorandum is all the _____ of sales made. 

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About This Quiz


Business is the institution in which people can make a living or help others by creating or buying, and selling goods and services. Accounting is the measuring, analyzing, and communicating financial information about businesses and corporations. This quiz necessitates your comprehension of what simplified equation best refers to Assets=Liability, what happens if you go bankrupt, what GNA stands for, etc. This quiz will help you learn the foundations of a business. Could you give it a go? If yes, let's get started.

Foundations Of Business Quiz: Accounting - Quiz

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  • 2. 
    If you go bankrupt you skip out on all expenses except ______________.  - ProProfs

    If you go bankrupt you skip out on all expenses except ______________. 

    Explanation
    Wages, rent, repairs, travel insurance, utilities, entertainment, storage, interest, donations, licenses, fees, supplies, advertising, taxes, are all expenses. (This will be on the test.) If you go bankrupt, you skip out of all of them, except taxes.

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  • 3. 
    Net Profit over Net Sales = _______________________ _ - ProProfs

    Net Profit over Net Sales = _______________________ _

    Explanation
    The given answer, "net profit ratio," is correct. Net profit over net sales is a financial ratio that measures the profitability of a company. It is calculated by dividing the net profit (total revenue minus total expenses) by the net sales (total sales minus any discounts or returns). The net profit ratio indicates the percentage of each dollar of sales that is retained as profit after all expenses are paid. A higher net profit ratio suggests better profitability and efficiency in managing expenses.

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  • 4. 
    Sarbanes-Oxley is a law that says the _________ can go to Jail.  - ProProfs

    Sarbanes-Oxley is a law that says the _________ can go to Jail. 

    Explanation
    Sarbanes-Oxley is a law that holds CEOs accountable for their actions and imposes strict penalties for fraudulent activities committed by them. This law was enacted in response to several corporate scandals, such as Enron and WorldCom, where CEOs were involved in fraudulent financial practices. Sarbanes-Oxley aims to ensure transparency, accountability, and integrity in corporate governance by making CEOs legally responsible for their actions. If a CEO is found guilty of engaging in illegal activities or providing false information, they can be prosecuted and sentenced to jail under this law.

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  • 5. 

    Physchographic is the study of human behavior and ____________, while demographic is the study of hhuman occupation. 

    Explanation
    Psychographic is the study of human behavior and lifestyle, while demographic is the study of human occupation. This means that psychographic analysis focuses on understanding the attitudes, values, interests, and opinions that drive consumer behavior, while demographic analysis focuses on categorizing people based on factors such as age, gender, income, and occupation. By studying lifestyle, psychographic analysis aims to gain insights into how individuals' choices and preferences are influenced by their interests, hobbies, and activities.

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  • 6. 
    An AA bond is a less ___________ than an A Bond.  - ProProfs

    An AA bond is a less ___________ than an A Bond. 

    Explanation
    Bonds are a less risky form of stock. AA = low risk bond, to an A bond, a little risky. Down to a junk bond which is higher risk.
    Companies cannot grow based on revenue alone.

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  • 7. 
    Pacioli says you have to have good: Math skills,  good records, and you have to use _________ and _________. (use a comma to sperate answers)  - ProProfs

    Pacioli says you have to have good: Math skills,  good records, and you have to use _________ and _________. (use a comma to sperate answers) 

    Explanation
    According to Pacioli, in order to have good financial management, one must possess good math skills and maintain accurate records. Additionally, one must utilize the concepts of debits and credits, which are fundamental to double-entry bookkeeping. Debits and credits are used to record and track the flow of money in and out of accounts, ensuring that financial transactions are accurately and comprehensively recorded.

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  • 8. 
    Velocity is the _________ in which you get to the market.  - ProProfs

    Velocity is the _________ in which you get to the market. 

    Explanation
    Velocity is the measure of how quickly an object moves in a particular direction. In the context of getting to the market, velocity refers to the speed at which one reaches the market. Therefore, the correct answer is "speed," as it represents the rate at which someone can travel to the market.

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  • 9. 
    What simplified equation best refers to Assests = Liability plus Equity  - ProProfs

    What simplified equation best refers to Assests = Liability plus Equity 

    • A=L+E

    • L+E = A

    • None of these are correct

    • L+E-A=Assets

    Correct Answer
    A. A=L+E
    Explanation
    Alan wrote that Assets = Liabilities + Equity (A = L+E), but that doesn't make sense to me. Seems expenses would be liabilities + equity, but maybe I misunderstood. The remainder is the Earnings Value, distributed among shareholders. $900M in assets = $800M in liabilities + $50M stockholders’ equity. The rest is returned as Stockholders’ Equity (SE).

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  • 10. 
    Luca Pacioli was dubbed the "__________ of double-entry bookkeeping"  - ProProfs

    Luca Pacioli was dubbed the "__________ of double-entry bookkeeping" 

    • Orator

    • Master

    • King

    • Father

    Correct Answer
    A. Father
    Explanation
    Luca Pacioli was given the title "Father of double-entry bookkeeping" because he is credited with writing the first published work on the subject in 1494. His book, "Summa de arithmetica, geometria, proportioni et proportionalita," included a detailed explanation of the double-entry system, which revolutionized accounting practices and became the foundation for modern bookkeeping. Pacioli's contributions to the field earned him the nickname "Father" as a way to acknowledge his pioneering work and significant influence in the development of accounting principles.

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  • 11. 

    Pacioli used the Venitian system for Debits and Credits. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Pacioli, an Italian mathematician and Franciscan friar, is known for his book "Summa de arithmetica, geometria, proportioni et proportionalità" which included the first published description of the double-entry bookkeeping system. This system, also known as the Venetian system, is based on the use of debits and credits to record financial transactions. Therefore, it is true that Pacioli used the Venetian system for debits and credits.

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  • 12. 
    George Lucas, owner of the Star Wars enterprise. Gets a Retained earning of 5% of anytime the use of Starwarslogo is used.   - ProProfs

    George Lucas, owner of the Star Wars enterprise. Gets a Retained earning of 5% of anytime the use of Starwarslogo is used.  

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Alan talked a bit about retained earnings. George Lucas owns the Star Wars logo, and he gets 5% of revenue every time the logo is used. Alan mentioned that he has a lot of Star Wars stuff.

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  • 13. 
    What is a P/E?  - ProProfs

    What is a P/E? 

    • Placement Equity

    • Price to Earning

    • Parameter Element

    • Price minus Equity

    Correct Answer
    A. Price to Earning
    Explanation
    Stock is buying based on what you believe will happen in the future. A $1 share (earnings value) will be priced at $2, with the assumption that it will raise to over $2. That’s a 2:1 P/E ratio, price to earnings ratio.

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  • 14. 
    The Geisha became poor through accounting.  - ProProfs

    The Geisha became poor through accounting. 

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement suggests that the Geisha became poor due to accounting. However, the answer is false because the statement does not provide any information or context to support this claim. Without further details, it is not possible to determine the cause of the Geisha's poverty.

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  • 15. 
    Which pricing stratagey has an objective to enter the market as fast as possible and at the lowest price to discourage competitors). This is the statagey to capture the most market share.  - ProProfs

    Which pricing stratagey has an objective to enter the market as fast as possible and at the lowest price to discourage competitors). This is the statagey to capture the most market share. 

    • Penetration

    • Skimming

    Correct Answer
    A. Penetration
    Explanation
    Penetration pricing is a pricing strategy that aims to quickly enter the market by setting a low initial price. The objective is to attract customers and gain a significant market share. This strategy is effective in discouraging potential competitors from entering the market and allows the company to establish a strong presence. It is different from skimming pricing, which involves setting a high initial price to target a niche market and maximize profits.

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  • 16. 
    According to Cicero's Central Canon of the Fairness Doctrine - What was not morally right is not __________ (productive).   - ProProfs

    According to Cicero's Central Canon of the Fairness Doctrine - What was not morally right is not __________ (productive).  

    Correct Answer
    expediant
    Explanation
    It's not productive to give a person bad directions.

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  • 17. 
    Storing tools is an expense.  - ProProfs

    Storing tools is an expense. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Storing tools can indeed be considered an expense. Tools require proper storage, which may include purchasing storage units, cabinets, or shelves. Additionally, storing tools also requires maintenance, such as regular cleaning and organizing, which can take up time and effort. Moreover, if tools are not stored properly, they may get damaged or lost, leading to additional expenses for repair or replacement. Therefore, it is accurate to say that storing tools can be an expense.

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  • 18. 
    Cicero wrote about Deception.  - ProProfs

    Cicero wrote about Deception. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Cicero, a Roman philosopher, statesman, and orator, did indeed write about deception. He discussed the concept of deception in his works, particularly in his speeches and essays, where he explored the tactics and consequences of deceitful behavior. Cicero's writings on deception provide valuable insights into the ethical implications and strategies of deceit, making the statement "Cicero wrote about Deception" true.

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  • 19. 

    Aquinas believed it not right to charge for profit, only labor plus material cost. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Aquinas believed that it is not morally right to charge for profit, but only for the labor and material costs involved in producing a product. This means that according to Aquinas, it is not ethical to make a profit by charging more than the actual cost of labor and materials. Therefore, the statement "Aquinas believed it not right to charge for profit, only labor plus material cost" is true.

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  • 20. 

    To create an efficient and effective distribution system you would widen as many channels as you can. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Expanding the number of distribution channels can indeed contribute to creating a more efficient and effective distribution system. By widening the channels, a company can reach a larger customer base, increase product availability, and reduce delivery time. This allows for better customer satisfaction, increased sales, and improved overall distribution performance. Therefore, the statement "To create an efficient and effective distribution system you would widen as many channels as you can" is true.

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  • 21. 

    Breadth= how many products we have. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because breadth refers to the number of products that a company offers. It represents the variety and range of products available to customers. A company with a wide breadth has a diverse product portfolio, catering to different customer needs and preferences. Therefore, the correct answer is true.

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  • 22. 
    Accounts cut ______ and Marketers ________ on advertising. (seperate answer with comma).  - ProProfs

    Accounts cut ______ and Marketers ________ on advertising. (seperate answer with comma). 

    • Costs, spend

    • Costs, invest

    • Corners, mitigate

    • Spending, invest

    Correct Answer
    A. Costs, spend
    Explanation
    If a company doesn’t make its projected revenue by even a dime, the stockholders lose interest, and the company is in hot water for losing stock. The “bubble bursts.” Alan talked about the '00s .com bubble bursting. He says marketing and accounting never really get along. Accountants cut costs, and marketers spend on advertising.

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  • 23. 
    Which order in accounting is correct? - ProProfs

    Which order in accounting is correct?

    • Memo, Journal, Ledger

    • Ledger, Journal, Memo

    • Journal, Ledger, Audit

    • Memo, Ledger, Journal

    Correct Answer
    A. Memo, Journal, Ledger
    Explanation
    In accounting, the correct order is to first record transactions in a memo, then transfer those transactions to a journal, and finally post the transactions from the journal to the ledger. This order ensures that all transactions are properly recorded and organized before being summarized in the ledger.

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  • 24. 
    According to Saikaku an accountants obligation is to __________________. (hint: two words) - ProProfs

    According to Saikaku an accountants obligation is to __________________. (hint: two words)

    • Audit accounting

    • Establish marketing mix

    • Cut cost

    • Budget the books

    Correct Answer
    A. Cut cost
    Explanation
    According to Saikaku, an accountant's obligation is to "cut cost". This implies that the accountant is responsible for identifying areas where expenses can be reduced or eliminated in order to improve the financial performance of the organization. This may involve analyzing spending patterns, negotiating with suppliers, implementing cost-saving measures, and finding ways to optimize resources. By cutting costs, the accountant helps the company increase its profitability and efficiency.

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  • 25. 

    Who says that it is unlawful but not a sin to create unquality goods? 

    • Aquinas

    • Cicero

    • Veblen

    • Darwin

    Correct Answer
    A. Aquinas
    Explanation
    Aquinas is the correct answer because he believed that it is unlawful but not a sin to create unquality goods. Aquinas was a medieval philosopher and theologian who distinguished between natural law and divine law. According to him, creating unquality goods goes against the principles of natural law and is therefore unlawful, but it is not considered a sin in the eyes of God. Aquinas' perspective on this issue is influenced by his understanding of ethics and the distinction between human laws and divine laws.

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  • 26. 
    According to Saikaku, woman make better accountants.  - ProProfs

    According to Saikaku, woman make better accountants. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    According to Saikaku, women make better accountants. This implies that Saikaku believes women possess qualities or skills that make them more adept at accounting than men. However, without further context or information, it is difficult to determine the specific reasons behind Saikaku's statement.

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  • 27. 
    Thomas Aquinas brought two things together ____________ and Jerusalem.  - ProProfs

    Thomas Aquinas brought two things together ____________ and Jerusalem. 

    • Socratic Belief

    • Athens

    • Atheism

    • Christians

    Correct Answer
    A. Athens
    Explanation
    Cicero (athens) - Mathew (bible)

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  • 28. 

    GNA refers to: 

    • General Nominal Apposition

    • General and Administrative Expenses

    • Government National Association

    • Grandoire Name Act

    Correct Answer
    A. General and Administrative Expenses
    Explanation
    GNA stands for General and Administrative Expenses. This term is commonly used in financial and accounting contexts to refer to the overall costs associated with managing and running a business, excluding direct production costs. These expenses typically include salaries, rent, utilities, office supplies, and other overhead costs. GNA is an important metric for assessing the efficiency and profitability of a company, as it represents the resources allocated to support the organization's overall operations and administration.

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  • 29. 
    What story does Saikaku teach, that says if you let them cool you will pay less by weight.  - ProProfs

    What story does Saikaku teach, that says if you let them cool you will pay less by weight. 

    • Hotcakes story

    • Hotdog story

    • Pancake story

    • Rice story

    Correct Answer
    A. Hotcakes story
    Explanation
    The correct answer is "hotcakes story". This suggests that Saikaku teaches a story about hotcakes, where it is implied that if you let them cool, you will pay less by weight. The story might highlight the idea that the price of hotcakes decreases as they cool down, possibly encouraging people to wait before purchasing them in order to save money.

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  • 30. 

    What person said that there are 3 criteria in goods:  Substance (if I advertise something gold and it is plastic)  Quality (If I say a mug keeps warm for 20 and it doesn't_  Promotion (if product is defective it is unlawful but not sinful not say anything unluess it is harmful to someone). 

    • Cicero

    • Darwin

    • Veblen

    • Aquinas

    Correct Answer
    A. Aquinas
    Explanation
    Aquinas is the correct answer because he is known for his work in ethics and philosophy, particularly his theory of natural law. In this context, Aquinas is likely referring to the criteria for determining the moral value of goods, which include substance (truthfulness in advertising), quality (delivering what is promised), and promotion (not causing harm to others). This aligns with Aquinas' emphasis on moral principles and the importance of acting in accordance with natural law.

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  • 31. 
    Which of the gollowing can you  use to figure profitability from a balance sheet? - ProProfs

    Which of the gollowing can you  use to figure profitability from a balance sheet?

    • Income Statement

    • Profit and Loss Statement

    Correct Answer
    A. Income Statement
    Explanation
    You cannot figure profitability from the balance sheet. For that you need an income statement.

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  • 32. 

    Thomistic Logic was taught by churches to teach proper mathematics. 

    • True

    • False

    Correct Answer
    A. False
    Explanation
    No, churches taught it to clean the people.

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  • 33. 
    Breadth X Depth = Plan  - ProProfs

    Breadth X Depth = Plan 

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Breadth X Depth = Length

    Breadth ( how many )
    Depth ( how deep )
    length ( how long )

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  • 34. 
    If you are storing goods you manugacture, its an expense, not a cost.  - ProProfs

    If you are storing goods you manugacture, its an expense, not a cost. 

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Wages, rent, repairs, travel insurance, utilities, entertainment, storage, interest, donations, licenses, fees, supplies, advertising, taxes, are all expenses. (This will be on the test.) If you go bankrupt, you skip out of all of them, except taxes. If you’re storing the goods you manufacture, it’s a cost, not an expense. But if you’re storing tools or documents, etc., it’s an expense. When looking into a company, you need to check if it’s solvent – can this company pay down debt in the event of a cataclysmic event (lawsuit, etc.)? The company can ask the stockholders if they may retain 5% of their money to grow, but technically it’s the stockholder’s money.

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

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  • Feb 19, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Nov 20, 2011
    Quiz Created by
    Jmundo
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