BUSA Chapter 1 Quiz with Correct Answers
Preferred stock shareholders would be considered as part of what group of stakeholders?
capital market
internal
product or service market
government Correct Ans-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 Ans-corporation
In the text, Walmart is described as a:
manufacturing business
not-for-profit business
merchandising business
service business Correct Ans-merchandising business
Which of the following is an intangible asset?
, land
cash
equipment
patent Correct Ans-patent
Cash investments made by the stockholders of the business are reported on the statement of
cash flows in the _____. Correct Ans-financing activities section
What is a production constraint? Correct Ans-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 Ans-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 Ans-prepaid expense
Preferred stock shareholders would be considered as part of what group of stakeholders?
capital market
internal
product or service market
government Correct Ans-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 Ans-corporation
In the text, Walmart is described as a:
manufacturing business
not-for-profit business
merchandising business
service business Correct Ans-merchandising business
Which of the following is an intangible asset?
, land
cash
equipment
patent Correct Ans-patent
Cash investments made by the stockholders of the business are reported on the statement of
cash flows in the _____. Correct Ans-financing activities section
What is a production constraint? Correct Ans-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 Ans-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 Ans-prepaid expense
