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Accounting Basics for Business Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Which one of the following is revenue?

Question 2 2. What accounting principle requires having the ability to rely on documented information to record financial data?

Question 3 3. On which financial statement is revenue reported?

Question 4 4. Which is NOT true about budgets?

Question 5 5. The lower the debt ratio, the _____ the risk for potential financers.

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Question 6 6. Evan owns his own business running a coffee shop in a downtown area. Which principle must he remember that no matter what he does as a business owner, he must keep his personal dealings completely separate transactions?

Question 7 7. Choose the BEST answer to explain the results of return on assets.

Question 8 8. What is the ideal debt ratio for an organization?

Question 9 9. Which of the following are 'assets?'

Question 10 10. What does ROI measure?

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Question 11 11. What is the best definition of ROE?

Question 12 12. Which of the following is not a liability?

Question 13 13. Which one of the following is the best explanation of liabilities?

Question 14 14. Which is NOT true about metrics?

Question 15 15. What is the period of time to measure ROE?

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Question 16 16. Which is NOT true about surveys?

Question 17 17. Choose the BEST answer to calculate return on assets.

Question 18 18. The formula for computing a company's debt ratio is _____.

Question 19 19. On which financial statement are all liabilities reported?

Question 20 20. What accounting principle states that people involved in a transaction should not be personally related?

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Question 21 21. Choose the BEST answer to define assets.

Question 22 22. What are the rules and regulations that must be followed when reporting all financial data?

Question 23 23. What's the difference between net revenue and gross revenue?

Question 24 24. Which of the following statements best defines 'cash flow?'

Question 25 25. What's the difference between short-term and long-term liabilities?

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Question 26 26. Which one of the following is the correct formula to determine liabilities?

Question 27 27. On what financial statement can you find the total asset and total liabilities values?

Question 28 28. You purchased some stock a year ago for $10,000. It's now worth only $9,900. You received $200 in dividends. What is your ROI?

Question 29 29. Which one of the following is NOT revenue?

Question 30 30. Choose the BEST answer as it relates to net income.

Accounting Basics for Business Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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