Acc499 Bachelor Capstone in Accounting: Unit 1 Quiz

Acc499 Bachelor Capstone in Accounting
Unit 1 Quiz

1. A note payable requires payment of the amount borrowed plus
interest.
cash.
accounts payable.
investments.

2. What is the main objective of most business organizations?
To provide a public service
To maximize profits
To provide a benefit to society
To manufacture a quality product

3. When a business borrows money, it incurs a(n)
tax.
liability.
receivable.
additional equity.

4. Which of the items below is NOT a business organization form?
Personal entrepreneurship
Sole-Proprietorship
Limited Partnership
S-Corporation

5. Financing activities involve obtaining __________ to operate a business.
products
customers
business incentives
funds

6. Shares of ownership are evidenced by issuing
bonds payable.
commercial paper.
shares of stock.
notes payable.

7. Which of the following is an example of an intangible asset?
Patent
Cash
Land
Equipment

8. When a product is sold, this cost is often called
cost of goods sold.
revenue.
products.
retained earnings.

9. The role of accounting in business is best defined as
an information system that provides reports to stakeholders about the economic activities and condition of a business.
a method of forecasting the future profitability of a company.
the policies, procedures, and strategies used in a business.
transaction analysis.

10. Which of the following would NOT be an example of a merchandising business?
General Motors Company
A local grocery store
Books-a-Million
Dunkin Donuts
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