Quiz Detail

Q1 . All profits go to the owner is an advantage of a sole proprietorship.

A True

B False

Q2 . The 3 forms of businesses (ownership structures) are:

A Revenue, profit, income

B Service, Manufacturing, Corporation

C Sole proprietorship, Partnership, Corporation

D Partnership, Withdrawal, Owner's equity

Q3 . A service business __________

A Has only one owner

B Never earns a profit

C Buys raw materials, uses labor and machinery to transforms them into finished products

D Provides a needed service for a fee

Q4 . A merchandising business _______________.

A Bakes bread and packages it for the grocery store

B Buys finished products and resells them to individuals or other businesses

C Does not need accountants

D Buys raw materials, uses labor and machinery to transforms them into finished products

Q5 . Owner's Equity is the owner's claims to the business' cash only.

A True

B False

Q6 . The amount of money earned after the costs of operating a business are paid is_____________.

A Revenue

B Income

C Profit

D Capital

Q7 . The following are Types of businesses.

A Service, Merchandising, Manufacturing

B Service, Sole Proprietorship, Manufacturing

C Sole Proprietorship, Partnership, Corporation

D Assets, Expenses, Income

Q8 . Which of the following would NOT be considered a service business?

A General Motors

B North American Van Lines

C Delta Airlines

D Alamo Rent A Car

Q9 . The most common form of business organization is the ________________.

A Partnership

B Sole proprietorship

C Corporation

D Not-for-profit

Q10 . The accounting equation is ____________________

A Revenue - expenses = Net income

B Assets + Liabilities = Owner's Equity

C Assets - Liabilities = Owner's Equity

D Liabilities + Owner's Equity = Assets

Q11 . Which of the following is an example of a liability?

A Cable bill

B Mortgage

C Accounts recievable

D Car

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