Accounting test
ACCT
TEST
1. Which of the following is NOT a characteristic of a corporation?
a.
Corporations are organized as a separate legal taxable entity.
b.
Ownership is divided into shares of stock.
c.
Corporations experience an ease in obtaining large amounts of resources by issuing stock.
d.
A corporation’s resources are limited to its individual owners’ resources.
e.
Corporations make up 20% of all businesses.
2. An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a
a.
proprietorship.
b.
corporation.
c.
partnership.
d.
governmental unit.
3. Which of the following are business stakeholders?
a.
Stockholders
b.
Suppliers
c.
Customers
d.
All of these
4. The following are examples of internal stakeholders EXCEPT:
a.
managers.
b.
creditors.
c.
employees.
d.
All of these are internal stakeholders.
5. Capital market stakeholders have an interest in the company because
a.
they provide incentives for the company to market their products.
b.
they are part of the Marketing Department that is responsible for promoting the products or services to increase the business profits.
c.
they help market their products to customers or find vendors to supply needed inputs.
d.
they provide major financing for the business.
6. Who has first preference to assets in case a business fails?
a.
Stockholders
b.
Long-term creditors
c.
Customers
d.
Employees
7. Financing activities involve obtaining __________ to operate a business.
a.
products
b.
customers
c.
business incentives
d.
funds
8. When a business borrows money, it incurs a(n)
a.
tax.
b.
liability.
c.
receivable.
d.
additional equity.
9. Shares of ownership are evidenced by issuing
a.
bonds payable.
b.
commercial paper.
c.
shares of stock.
d.
notes payable.
10. The resources a business owns are called
a.
assets.
b.
liabilities.
TEST
1. Which of the following is NOT a characteristic of a corporation?
a.
Corporations are organized as a separate legal taxable entity.
b.
Ownership is divided into shares of stock.
c.
Corporations experience an ease in obtaining large amounts of resources by issuing stock.
d.
A corporation’s resources are limited to its individual owners’ resources.
e.
Corporations make up 20% of all businesses.
2. An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a
a.
proprietorship.
b.
corporation.
c.
partnership.
d.
governmental unit.
3. Which of the following are business stakeholders?
a.
Stockholders
b.
Suppliers
c.
Customers
d.
All of these
4. The following are examples of internal stakeholders EXCEPT:
a.
managers.
b.
creditors.
c.
employees.
d.
All of these are internal stakeholders.
5. Capital market stakeholders have an interest in the company because
a.
they provide incentives for the company to market their products.
b.
they are part of the Marketing Department that is responsible for promoting the products or services to increase the business profits.
c.
they help market their products to customers or find vendors to supply needed inputs.
d.
they provide major financing for the business.
6. Who has first preference to assets in case a business fails?
a.
Stockholders
b.
Long-term creditors
c.
Customers
d.
Employees
7. Financing activities involve obtaining __________ to operate a business.
a.
products
b.
customers
c.
business incentives
d.
funds
8. When a business borrows money, it incurs a(n)
a.
tax.
b.
liability.
c.
receivable.
d.
additional equity.
9. Shares of ownership are evidenced by issuing
a.
bonds payable.
b.
commercial paper.
c.
shares of stock.
d.
notes payable.
10. The resources a business owns are called
a.
assets.
b.
liabilities.