Business and Finance 6-12 (276) Exam Questions And Answers (Updated And Verified)

Business and Finance 6-12 (276) Exam Questions And Answers (Updated And Verified) When a company is trying to regulate its spending and track incoming funds, the accountant should prepare an income statement once A. every month. B. every two months. C. every six months. D. every year. - answerOption A. every month Income statements are usually produced once a month to ensure expense review and control. This will allow a company to determine how much money is coming in and how it's being spent. Which of the following best identifies the use of debt financing to raise capital? A. Convertible securities B. Direct stock offerings C. Promissory notes D. Initial public offerings - answerOption C. promissory notes A promissory note would indicate a loan and debt financing to raise capital. Every other option raises capital by EQUITY financing Which of the following occurs after a customer withdraws money from an automated teller machine? A. The customer's access privileges are checked. B. The debit is posted to the account. C. The connection to the server is established. D. The system verifies that the customer has an account. - answerOption B. the debit is posted to the account After the customer has withdrawn money from the account via the ATM, the amount is deducted from the customer's account balance. A lending company will review a borrower's accounting documentation to evaluate A. creditworthiness. B. current assets to past liabilities. C. the expenses in terms of employee risk management. D. the aggregate statistics relating to the likelihood that a competitor will enter the market. - answerOption A.creditworthiness Creditworthiness is the key determinant of how likely it is that the loan will be repaid. Which of the following doctrines prevents a person from insuring a neighbor's house? A. Doctrine of contribution B. Doctrine of subrogation C. Doctrine of indemnification D. Doctrine of insurable interest - answerOption D. doctrine of insurable interest Doctrine of insurable interest means that a person will suffer financial or other kinds of loss when they lose or damage a particular property. Which of the following inventory systems is designed to record the actual costs associated with the inventory using a physical count? A. The periodic inventory system B. The perpetual inventory system C. The temporary inventory system D. The just-in-time inventory system - answerOption B. the perpetual inventory system