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 selecting transactions and events relevant to an organization. Which of the following events would be recorded in the accounting records of Acme Car Wash?
A) Acme washes 500 cars.
B) J.B. Smith, a customer, buys lunch at the restaurant next door to Acme while waiting for her car to be washed.
C) Clean Company, a supplier, sells 50 pounds of soap to ABC Company.
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 credit are:
A) Accounts payable
B) Accounts receivable
C) Liabilities
D) Expenses
E) Equity
4) Planning activities:
A) Are the means organizations must use to pay for resources.
B) Involve the acquiring and disposing of resources that an organization uses to acquire and sell its products or services.
C) Involve defining the ideas, goals, and actions of an organization.
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 following information 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 the beginning of the year of $200,000. Its assets at the end of the year 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 the year were $22,000, dividends declared totaled $13,000, ending equity for the year is $181,000, and beginning assets for the year were $222,000.
What was revenue for the year?
A) $154,000
B) $155,000
C) $53,000
D) $98,000
E) $135,000