Bus 251 Chapter 1 & 2 Pre Test
Questions with Correct Verified
Answers.
The two primary sources of funds to finance a company's expansion are:
a) Customers and creditors.
b) Customers and shareholders.
c) Creditors and investors.
d) Investors and shareholders. - Answer c) Creditors and Investors
What are the owners of a corporation called?
a) Auditors
b) Shareholders
c) Company management
d) Stakeholders - Answer b) Shareholders
Which of the following best describes the statement of income?
a) It measures economic performance over a period of time.
b) All of the other answers are correct - they describe information provided in a statement of
income.
c) It provides information about an entity's financial situation at a point in time.
d) It measures inflows and outflows of an entity's cash resources over a period of time. -
Answer a) It measures economic performance over a period of time
Material information is information that would impact the decision of a financial statement
user. Materiality is most closely related to:
a) Faithful representation
b) Relevance
c) Understandability
d) Verifiability - Answer
Which of the following is a current asset?
Questions with Correct Verified
Answers.
The two primary sources of funds to finance a company's expansion are:
a) Customers and creditors.
b) Customers and shareholders.
c) Creditors and investors.
d) Investors and shareholders. - Answer c) Creditors and Investors
What are the owners of a corporation called?
a) Auditors
b) Shareholders
c) Company management
d) Stakeholders - Answer b) Shareholders
Which of the following best describes the statement of income?
a) It measures economic performance over a period of time.
b) All of the other answers are correct - they describe information provided in a statement of
income.
c) It provides information about an entity's financial situation at a point in time.
d) It measures inflows and outflows of an entity's cash resources over a period of time. -
Answer a) It measures economic performance over a period of time
Material information is information that would impact the decision of a financial statement
user. Materiality is most closely related to:
a) Faithful representation
b) Relevance
c) Understandability
d) Verifiability - Answer
Which of the following is a current asset?
