1. A limited partnership:
A.)Includes a general partner with unlimited liability.
B.)Is subject to double taxation.
C.)Has owners called stockholders.
D.)Is the same as a corporation.
E.)Must only have two partners.
2. Identifying business activities requires selectingtransactions and events relevant to an organization. Which of thefollowing events would be recorded in the accounting records ofAcme Car Wash?
A.) Acme washes 500 cars.
B.)J.B. Smith, a customer, buys lunch at the restaurant next doorto Acme while waiting for her car to be washed.
C.) Clean Company, a supplier, sells 50 pounds of soap to ABCCompany.
D.) Sudsey Company, a supplier, goes out of business.
E.) Acme hires Andrea as a receptionist.
3.Assets created by selling goods and services on creditare:
A.) Accounts payable
B.) Accounts receivable
C.) Liabilities
D.) Expenses
E.) Equity
4.)Planning activities:
A.) Are the means organizations must use to pay forresources.
B.) Involve the acquiring and disposing of resources that anorganization uses to acquire and sell its products orservices.
C.) Involve defining the ideas, goals, and actions of anorganization.
D.) Are the carrying out of an organization's plans.
E.) Involve using resources to research, develop, purchase,produce, and market products and services.
5).Determine the net income of a company for which the followinginformation is available:
employee salaries expense- 180,000
Interest Expense- 10,000
Rent Expense- 20,000
Consulting Revenue- 400,000
A.) $190,000
B.) $210,000
C.) $230,000
D.) $400,000
E.) $610,000
6. )
FastForward has net income of $18,955 and assets at thebeginning of the year of $200,000. Its assets at the end of theyear total $246,000. Compute its return on assets.
A.) 7.7%
B.) 8.5%
C.) 9.5%
D.) 11.8%
E.) 13.0%
7.) Compute return on assets given net income of $13,764,beginning assets of $120,000, and ending assets of $176,000.
A.) 4.65%
B.) 7.82%
C.) 9.3%
D.) 11.47%
E.) 21.51%
8.) Ending liabilities are 67,000, beginning equity was $87,000,common stock issued during year totaled $31,000, expenses for theyear were $22,000, dividends declared totaled $13,000, endingequity for the year is $181,000, and beginning assets for the yearwere $222,000.
What was revenue for the year?
A.) $154,000
B.) $155,000
C.) $53,000
D.) $98,000
E.) $135,000
9.) Ending liabilities are 67,000, beginning equity was $87,000,common stock issued during year totaled $31,000, expenses for theyear were $22,000, dividends declared totaled $13,000, endingequity for the year is $181,000, and beginning assets for the yearwere $222,000.
What are the ending assets for the year?
A.) $154,000
B.) $134,000
C.) $212,000
D.) $248,000
E.) $155,000
