Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
CHAPTER 1 NAME ___________________________________
TEN-MINUTE QUIZ SECTION _____________ DATE____________
_____________________________________________________________________________
_
_____ 1. The primary purpose of a business is to:
a. Pay taxes to the IRS
b. Sell a product
c. Sell goods and/or services to make a profit for the owner(s)
d. Help others
_____ 2. Sources of capital include:
a. Owners (investors)
b. Creditors (lenders)
c. Both A and B
d. None of the above
_____ 3. All of the following are types of for-profit businesses, except:
a. Merchandising companies
b. Service companies
c. Financial service companies
d. Charitable organizations
_____ 4. What is the name of the group that has much of the responsibility for setting
financial standards?
a. Public Companies Accounting Oversight Board
b. Financial Accounting Standards Board
c. Securities and Exchange Commission
d. None of the above
_____ 5. A business may be organized as a:
a. Corporation
b. Sole proprietorship
c. Partnership
d. Any of the above
_____ 6. A repayment of the principal of loans to creditors would be shown on the
statement of cash flows as a(n):
a. Operating activity
b. Investing activity
c. Financing activity
d. Revenue activity
7. Every business transaction is made up of:
a. Resources
b. Agents
c. Events
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1-1
d. All of the above
_____ 8. The balance sheet contains information about:
a. Revenues and expenses
b. Cash inflows and outflows
c. Assets, liabilities, and equity
d. All of the above
_____ 9. The income statement provides information about:
a. The financial position of the company at a point in time
b. The financial position of the company for a period of time
c. The amount of cash generated by operations
d. The performance of the company for a period of time
_____10. Which of the following financial statements reports the financial position of a
company?
a. The statement of cash flows
b. The statement of changes in owners’ equity
c. The balance sheet
d. The income statement
ANSWER KEY - CHAPTER 1 – TEN-MINUTE QUIZ
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1-2
