Accounting
3. The normal balance of Accounts Payable is on the
a. right side.
b. left side.
c. debit side.
d. decrease side.
Right side.
25. In a lease agreement, a tenant may have to pay the landlord a security deposit to
a. increase the value of the private property.
b. guard against any financial loss.
c. pay for monthly utilities.
d. pay for his/her time.
Guard against any financial loss.
39. Symbols used to identify services, as distinguished from goods, are called ______.
a. service marks
b. patents
c. copyrights
d. trade dress
Service Marks.
Define Capital
a. wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.
b. the action or process of investing money for profit or material result.
c. the money you have left after paying for business expenses
d.the action or business of promoting and selling products or services, including market research and advertising.
Wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.
According to the short-run Phillips curve, lower inflation rates are associated with:
(A) higher unemployment rates
(B) higher government spending
(C) larger budget deficits
(D) greater labor-force participation rates
(E) smaller labor-force participation rates
Higher unemployment rates.
1. What is the purpose of a trial balance?
a. To maintain the accounting equation: Assets = Liabilities + Owner’s Equity
b. To calculate Net Income
c. To calculate the ending balance in Owner’s Equity
d. To prove that Debits = Credits
To prove that Debits = Credits.
1. The rate the bank charges their best customer is referred to as the prime rate.
True or False?
True.
36. The document that lists the general powers of a corporation is called the:
a. memorandum of hierarchy.
b. memorandum of association.
c. articles of entrepreneurship.
d. articles of incorporation.
Articles of Incorporation.
What is the formula for gross pay?
a. Ipert
b. Annual Salary Amount / Number of Pay Periods
c. Iprt
d. Gross wages – pretax deductions and nontaxable arrangements – taxes – after-tax deductions
Annual Salary Amount / Number of Pay Periods.
Which of the following will lead to a decrease in a nation’s money supply?
(A) A decrease in income tax rates
(B) A decrease in the discount rate
(C) An open market purchase of government securities by the central bank
(D) An increase in reserve requirements
(E) An increase in government expenditures on goods and services
An increase in reserve requirements.
5. Periodic Inventory means that . . .
a. Cost of Goods Sold is calculated when goods are purchased.
b. Cost of Goods Sold is calculated when goods are sold.
c. Cost of Goods Sold is calculated at the end of the period.
d. Cost of Goods Sold is not calculated.
Cost of Goods Sold is calculated at the end of the period.
21. Writing the words “For Deposit Only” on the back of a check before your signature constitutes a
a. blank endorsement
b. special endorsement
c. restrictive endorsement
d. joint endorsement
Restrictive endorsement.
30. The tort of slander is the spreading of damaging words or ideas about a person, directly or
indirectly, is called______.
a. defamation.
b. libel.
c. an intentional tort.
d. negligence.
Libel.
Over a year, Michael Scott's Paper Company has earned 30,000 dollars in revenue and they have spent 12,000 in expenses. What is their year net income?
a. 360,000
b. -12,000
c. 2,500
d. 18,000
18,000
What is the compound interest formula?
a. A=IPRT
b. A=P(1+(r/n))nt
c. A=P(1+rt)
D. A=P(1-(r/n))nt
A=P(1+(r/n))nt
4. The entry to record a bad debt of $510 under the Allowance Method would be ______
a. Allowance for Bad Debts $ 510
Accounts Receivable $ 510
b. Allowance for Bad Debts 510
Bad Debts Expense 510
c. Bad Debts Expense 510
Accounts Receivable 510
d. Bad Debts Expense 510
Allowance for Bad Debts 510
Allowance for Bad Debts $ 510
Accounts Receivable $ 510
23. The value of a house less the amount still owed on the money borrowed to purchase it is
called the _____________.
a. mortgage
b. spread
c. points
d. equity
Equity.
To be successful in an intentional tort, the plaintiff must show that the defendant intended to
harm the plaintiff.
True.
True or false?
Profit= Sales Revenue+ Total Costs?
False.
A stock in a company is:
a. a share of ownership of a company held by a shareholder.
b. an IOU that pays interest.
c. a portion of a firm's profits paid to stock owners.
d. part of private savings.
e. the interest payment on borrowing.
A share of ownership of a company held by a shareholder.
6. The Nerris Company purchased a piece of equipment for $ 187,300 at the beginning of the
year. The company estimated that the equipment will last for 10 years, produce 100,000
units, and have a salvage value of $ 2,300. Calculate the units-of-production depreciation for
the first year in which the company produced 22,000 units.
a. $ 18,500
b. $ 18,730
c. $ 40,700
d. $ 41,206
$ 40,700
20. Which of the following assets is the most liquid?
a. A certificate of deposit that comes due in six months
b. Ten shares of common stock
c. The money in your savings account
d. The money in your wallet
The money in your wallet.
47. The Electronic Communications Privacy Act (ECPA) states that individuals may not gain
access to a(n) ______ without permission.
a. fund transfer system
b. cyberspace privacy system
c. electronic communication system
d. antivirus organization
Electronic Communication System.
Which statement is true?
a. A manager minimizes profit when the value of the last unit of product (marginal revenue) equals the cost of producing the last unit of production (marginal cost). Maximum profit is the level of input where MC equals MR.
b. A manager maximizes profit when the value of the last unit of product (marginal revenue) equals the cost of producing the last unit of production (marginal cost). Maximum profit is the level of output where MC equals MR.
c. A manager minimizes profit when the value of the last unit of product (marginal revenue) equals the cost of producing the last unit of production (marginal cost). Maximum profit is the level of output where MC equals MR.
d. A manager maximizes profit when the value of the last unit of product (marginal revenue) equals the cost of producing the last unit of production (marginal cost). Maximum profit is the level of input where MC equals MR.
A manager maximizes profit when the value of the last unit of product (marginal revenue) equals the cost of producing the last unit of production (marginal cost). Maximum profit is the level of output where MC equals MR.
Andrea has a bank account with a balance of $2,500. Her bank gives her an interest rate of 2% which compounds quarterly over a period of 3 years. How much money did Andrea receive from interest?
Free Response
$154.19