To a business, cash includes currency, coins, checks, money in the checking accounts, money orders, and bank cashier's checks.
a. True
b. False
Indicate whether the statement is true or false
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Q. 2) Match each of the following terms with the appropriate definition. Each term is to be used only once.
a. Capital
b. Securities and Exchange Commission (SEC)
c. Stock
d. For-profit company
e. Dividends
f. Not-for-profit organization
g. Stock exchange
_____ 1. Distribution of earnings to the owners of the corporation
_____ 2. The financial resources to start a business
_____ 3. Units of ownership in a corporation
_____ 4. A market place where buyers and sellers of shares of stock exchange their shares
_____ 5. Governmental agency that monitors the stock market and the financial reporting of the firms that trade in the market
_____ 6. An organization that exists to provide goods and services to a target group at a reduced cost or no cost
_____ 7. A company with the goal of maximizing the owners' wealth
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Q. 3) When comparing a retail business to a service business, the financial statement that changes the most is the
a. balance sheet
b. income statement
c. statement of owner's equity
d. statement of cash flows
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Q. 4) The accounting rule which assumes that Team Shirts is continuing in business for an indefinite period of time is the ________.
A) separate-entity assumption
B) going-concern assumption
C) monetary-unit assumption
D) historical-cost principle
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Q. 5) Under the Sarbanes Oxley Act of 2002, the section on Corporate Responsibility requires a company's CEO and CFO to certify quarterly and annual reports.
Indicate whether the statement is true or false
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Q. 6) What is the purpose of a business?
What will be an ideal response?
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