Business And Finance Final Exam

BUSINESS AND FINANCE EXAM Question 1 The best definition of assets is the a. resources belonging to a company that have future benefit to the company. b. collections of resources belonging to the company and the claims on these resources. c. cash owned by the company. d. owners investment in the business. Answer: Question 2 Which of the following is not a liability? a. Accounts Receivable b. Accounts Payable c. Interest Payable d. Unearned Service Revenue Answer:Question 3 Which of the following financial statements is divided into major categories of operating, investing, and financing activities? a. The income statement. b. The balance sheet. c. The statement of cash flows. d. The retained earnings statement. Answer: Question 4 Ending retained earnings for a period is equal to beginning a. Retained earnings - Net income + Dividends. b. Retained earnings - Net income - Dividends. c. Retained earnings + Net income - Dividends. d. Retained earnings + Net income + Dividends. Answer:Question 5 Which of the following is not an advantage of the corporate form of business organization? a. Easy to raise funds b. Favorable tax treatment c. No personal liability d. Easy to transfer ownership Answer: Question 6 An advantage of