Category : Databases and related files
Archive   : FINEVAL.ZIP
Filename : Q1.TST

1. Economic resouces owned by a business are referred to as:

a. liabilities
b. capital
c. assets
d. revenue
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2. __________ are obligations of a business to others.

a. liabilities
b. capital
c. assets
d. revenue
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3. According to the accounting equation, assets equal liabilities
plus __________.

a. revenue
b. expenses
c. capital
d. retained earnings
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4. Resources received for goods or services are referred to as:

a. assets
b. capital
c. liabilities
d. revenue
[
5. Resources used up in producing goods or services are called:

a. assets
b. expenses
c. liabilities
d. revenue
[
6. If revenue exceeds expenses, the difference is called:

a. net income
b. common stock
c. retained earnings
d. current assets
[
7. Rent is an example of:

a. an asset
b. equity
c. an expense
d. retained earnings
[
8. The purchase of an automobile on account increases __________
and __________.

a. revenues, expenses
b. assets, liabilities
c. assets, capital
d. liabilities, revenues
[
9. The payment of a telephone bill reduces __________ and
__________.

a. assets, liabilities
b. assets, capital
c. liabilities, capital
d. revenue, expense
[
10. Receiving cash for professional services rendered increases
__________ and __________.

a. assets, capital
b. liabilities, capital
c. assets, retained earnings
d. retained earnings, capital
[
11. Paying a creditor reduces __________ and __________.

a. assets, capital
b. revenue, retained earnings
c. expense, revenue
d. liabilities, assets
[
12. Assets which can be converted into cash within one year are
classified as:

a. current
b. fixed
c. retained
d. public
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13. The accumulated earnings of a corporation are called:

a. assets
b. revenue
c. retained earnings
d. current earnings
[
14. The two types of stock that a corporation can issue are
__________ and __________.

a. capital, public
b. common, preferred
c. retained, exposed
d. interest-bearing, dividend-paying
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