Lesson 2
Economic Transactions and Accounting Equation
Self-Test
Multiple Choices
1,The ownership structure of a business includes the following forms:
A,Individual,group,corporate.
B,Sole proprietorship,partnership,or corporation.
C,Service,manufacturing,and financial.
D,Debtors,creditors,and owners.
2,Which of the following is NOT true concerning a sole proprietorship?
A,A sole proprietorship is a company owned by two or more individuals.
B,The owner is personally responsible for all of the decision made for the C,business.
C,Income from a sole proprietorship is included on the owner’s personal tax return.
D,The company’s bills are the owner’s bills.
3,The two types of merchandising businesses include:
A,Wholesale and retail. B,Service and financial.
C,Manufacturing and retail. D,Service and wholesale.
4,A corporation
A,Is a special legal form for a business in which the business is a legal entity separate from the owners.
B,Is a company with a single owner.
C,May cause unlimited liability for its shareholders.
D,Provides goods or services for the sole purpose of helping people.
5,The inputs of a firm include,
A,Capital. B,Equipment.
C,Inventory and supplies. D,All of the above.
6,Capital is:
A,Revenues earned by a business. B,Expenses owed by business.
C,Resources used to start and run a business. C,Assets owned by a business.
7,A service company,
A,Buys goods and services for resale. B,Manufactures goods.
C,Does something for its customers. D,Is a wholesale business.
8,A manufacturing business:
A,Will lend money to customers. B,Buys goods for resale.
C,Provides services to its customers. D,Makes the products it sells.
9,Financial services companies:
A,Deal in services related to money.
B,Sell insurance to their customers.
C,Lend money to consumers to pay for cars and houses.
D,All of the above.
10,Revenues include:
A,The amount earned from providing goods to customers.
B,The amount received from borrowing.
C,The amount earned from providing services to customers.
D,Both A and C.
11,Resources are:
A,Tangible things exchanged in a transaction.
B,Intangible things exchanged in a transaction.
C,Services exchanged in a transaction,
D,All of the above.
12,Events include:
A,The giving or getting of a resource. B,Cash disbursements.
C,Making a sale. D,All of the above.
Economic Transactions and Accounting Equation
Self-Test
Multiple Choices
1,The ownership structure of a business includes the following forms:
A,Individual,group,corporate.
B,Sole proprietorship,partnership,or corporation.
C,Service,manufacturing,and financial.
D,Debtors,creditors,and owners.
2,Which of the following is NOT true concerning a sole proprietorship?
A,A sole proprietorship is a company owned by two or more individuals.
B,The owner is personally responsible for all of the decision made for the C,business.
C,Income from a sole proprietorship is included on the owner’s personal tax return.
D,The company’s bills are the owner’s bills.
3,The two types of merchandising businesses include:
A,Wholesale and retail. B,Service and financial.
C,Manufacturing and retail. D,Service and wholesale.
4,A corporation
A,Is a special legal form for a business in which the business is a legal entity separate from the owners.
B,Is a company with a single owner.
C,May cause unlimited liability for its shareholders.
D,Provides goods or services for the sole purpose of helping people.
5,The inputs of a firm include,
A,Capital. B,Equipment.
C,Inventory and supplies. D,All of the above.
6,Capital is:
A,Revenues earned by a business. B,Expenses owed by business.
C,Resources used to start and run a business. C,Assets owned by a business.
7,A service company,
A,Buys goods and services for resale. B,Manufactures goods.
C,Does something for its customers. D,Is a wholesale business.
8,A manufacturing business:
A,Will lend money to customers. B,Buys goods for resale.
C,Provides services to its customers. D,Makes the products it sells.
9,Financial services companies:
A,Deal in services related to money.
B,Sell insurance to their customers.
C,Lend money to consumers to pay for cars and houses.
D,All of the above.
10,Revenues include:
A,The amount earned from providing goods to customers.
B,The amount received from borrowing.
C,The amount earned from providing services to customers.
D,Both A and C.
11,Resources are:
A,Tangible things exchanged in a transaction.
B,Intangible things exchanged in a transaction.
C,Services exchanged in a transaction,
D,All of the above.
12,Events include:
A,The giving or getting of a resource. B,Cash disbursements.
C,Making a sale. D,All of the above.
