BUSA Chapter 1 Quiz with correct answers 100%

BUSA Chapter 1 Quiz with correct answers 100% Preferred stock shareholders would be considered as part of what group of stakeholders? capital market internal product or service market government - Correct Answer capital market Which of the various organizational forms is associated with complex formation, limited liability, perpetual life, and is taxed? limited liability company proprietorship corporation partnership - Correct Answer corporation In the text, Walmart is described as a: manufacturing business not-for-profit business merchandising business service business - Correct Answer merchandising business Which of the following is an intangible asset? land cash equipment patent - Correct Answer patent Cash investments made by the stockholders of the business are reported on the statement of cash flows in the _____. - Correct Answer financing activities section What is a production constraint? - Correct Answer The point in the manufacturing process where the demand for the company's products exceeds its ability to produce the products A bank reconciliation should be prepared periodically because ____. - Correct Answer any differences between the depositor's records and the bank's records should be determined, and any errors made by either party should be discovered and corrected. Which of the following is considered an asset until consumed? Common stockholders' equity Preferred stock Accounts payable Accounts receivable Prepaid expense - Correct Answer prepaid expense If liabilities have a balance of $10,000 and stockholders' equity has a balance of $60,000, then assets must have a balance of _____. - Correct Answer $70,000 What is the objective of most businesses? - Correct Answer to maximize profit what is the difference between a manufacuring business and a merchandising business? - Correct Answer Manufacuring -changes basic inputs into products that are sold to customers Merchandising - business purchases products in a form that can be sold to customers without any additional changes. Why are most large companies like Apple, Pepsico, GE, and Intel organized as corporations? - Correct Answer 1. allows the company to obtain large amounts of resources by issuing stock 2. the stockholders' liability to creditors for the debts of the company is limited to their investment in the corporation