Page 1 of 17
GACE Business Education ALL Questions and
Verified Solutions Latest Update This Year
QUESTION: The interest charge on $2,000 borrowed for one year at a simple interest rate of
12% is - ANSWER-$240
$2,000*0.12
QUESTION: The actual rate of interest received on a savings account is called the - ANSWER-
effective rate
The break even point for a profit oriented enterprise is reached when - ANSWER-total revenue
equals total cost
QUESTION: A balance sheet is best described as - ANSWER-condition statement noting assets
and claims against the assets
QUESTION: I. Preparing the worksheet
II. Journalizing
III. Posting
IV. Preparing the post closing trial balance
, Page 2 of 17
V. Making the closing entries
Which of the following is the correct order of the accounting cycle steps listed above? -
ANSWER-II
III
I
V
IV
QUESTION: When the totals of a trial balance are equal. it can be determined that - ANSWER-
equal amounts of debits and credits have been posted
QUESTION: Which of the following would be classified as other income on an income
statement? - ANSWER-Interest earned
QUESTION: Which of the following is defined as an entity's total assets minus total liabilities? -
ANSWER-Net worth
QUESTION: When a stockholder signs a proxy solicited by the management of a corporation,
the stockholder has authorized the management to - ANSWER-vote the stockholder's shares
, Page 3 of 17
QUESTION: Which of the following is an employee salary deduction that is, by law, matched by
the employer? - ANSWER-FICA tax
QUESTION: Melinda's mother left a detailed will describing her wishes regarding the division of
her real and personal property. Which of the following courts will administer the will and
estates? - ANSWER-Probate court
QUESTION: Which of the following is an ethically sound practice when communicating a
business message? - ANSWER-Designing documents to maximize key points for readers
QUESTION: The goal of business writing is to produce a message that is purposeful, economical,
and - ANSWER-audience oriented
QUESTION: Sarah wants to thank her manager for allowing her to attend a business-related
seminar and then share what she learned from the seminar. Which of the following is the most
appropriate form of communication for Sarah to use? - ANSWER-Letter
QUESTION: An employee sends an e-mail message to a colleague at the company's office in
Bejing. To ensure that the transmission is clear, the employee selects words that the colleague
will understand. This is an example of which of the following parts of the communication
process? - ANSWER-Encoding
GACE Business Education ALL Questions and
Verified Solutions Latest Update This Year
QUESTION: The interest charge on $2,000 borrowed for one year at a simple interest rate of
12% is - ANSWER-$240
$2,000*0.12
QUESTION: The actual rate of interest received on a savings account is called the - ANSWER-
effective rate
The break even point for a profit oriented enterprise is reached when - ANSWER-total revenue
equals total cost
QUESTION: A balance sheet is best described as - ANSWER-condition statement noting assets
and claims against the assets
QUESTION: I. Preparing the worksheet
II. Journalizing
III. Posting
IV. Preparing the post closing trial balance
, Page 2 of 17
V. Making the closing entries
Which of the following is the correct order of the accounting cycle steps listed above? -
ANSWER-II
III
I
V
IV
QUESTION: When the totals of a trial balance are equal. it can be determined that - ANSWER-
equal amounts of debits and credits have been posted
QUESTION: Which of the following would be classified as other income on an income
statement? - ANSWER-Interest earned
QUESTION: Which of the following is defined as an entity's total assets minus total liabilities? -
ANSWER-Net worth
QUESTION: When a stockholder signs a proxy solicited by the management of a corporation,
the stockholder has authorized the management to - ANSWER-vote the stockholder's shares
, Page 3 of 17
QUESTION: Which of the following is an employee salary deduction that is, by law, matched by
the employer? - ANSWER-FICA tax
QUESTION: Melinda's mother left a detailed will describing her wishes regarding the division of
her real and personal property. Which of the following courts will administer the will and
estates? - ANSWER-Probate court
QUESTION: Which of the following is an ethically sound practice when communicating a
business message? - ANSWER-Designing documents to maximize key points for readers
QUESTION: The goal of business writing is to produce a message that is purposeful, economical,
and - ANSWER-audience oriented
QUESTION: Sarah wants to thank her manager for allowing her to attend a business-related
seminar and then share what she learned from the seminar. Which of the following is the most
appropriate form of communication for Sarah to use? - ANSWER-Letter
QUESTION: An employee sends an e-mail message to a colleague at the company's office in
Bejing. To ensure that the transmission is clear, the employee selects words that the colleague
will understand. This is an example of which of the following parts of the communication
process? - ANSWER-Encoding
