Chapter 1-PFA-2025

Multiple Choice

Name the 4 Types of Business:

• franchise, corporation, partnership, sole proprietorship

• sole proprietorship, club, non-profit, franchise

• accounting, marketing, advertising, corporation

• Nike, State Farm, Hobby Lobby, Subway

Multiple Choice

Which is a reason to NOT start a business:

• To make a profit

• Make your own schedule

• Pursue your dreams

• To pay back loans

Multiple Choice

When Luigi's Pizzeria went out of business, he was still responsible for paying all of the restaurant's bills. What type of business did he have?

• Sole Proprietorship

• Partnership

• Corporation

Multiple Choice

Marco's computer repair business has limited financial resources. What type of business is it?

• Sole Proprietorship

• Partnership

• Corporation

Multiple Choice

This business is legally separate from individual owners, and the owners are not personally responsible for debts and obligations of the business. What type of business is it?

• Sole Proprietorship

• Partnership

• Corporation

Multiple Choice

When one owner dies, the business usually ends. What type of business is it?

• Sole Proprieetorship

• Partnership

• Corporation

Multiple Choice

Stockholders get paid when this type of business makes money.

• Sole Proprietorship

• Partnership

• Corporation

Multiple Choice

Max's Cupcake Shop is probably an example of a ...

• Sole Proprietorship

• Partnership

• Corporation

Multiple Choice

Google, Amazon, and Facebook are examples of...

• Sole Proprietorships

• Partnerships

• Corporations

Multiple Choice

Lillian receives all of the profits and is personally responsible of all of the losses of her business; what type of business does she have?

• Sole Proprietorship

• Partnership

• Corporation

Multiple Choice

What is the purpose of an accounting system in a business?

• To schedule employee shifts

• To provide a meaningful reading on the business's financial health

• To track employee attendance

• To manage inventory levels

Multiple Choice

Why is it important for accounting systems to have accurate and up-to-date information?

• To schedule maintenance tasks

• To monitor employee performance

• To track customer preferences

• To determine the business's financial situation

Multiple Choice

What is one of the requirements for an effective accounting system?

• Easy to use

• Complex to use

• Expensive to operate

• Slow data processing

Multiple Choice

The Accounting Equation must always be in balance? 

• True
• False

Multiple Choice

Assets 

• Anything owed by the company
• Anything owned of value by the company

Multiple Choice

The owner's worth after assets are used to pay all liabilities is the definition of

• Owner's Equity
• Liabilities
• Assets

Multiple Choice

Always keep business and personal records separate?

• True
• False

Drag and Drop

In the Accounting Equation: What you​

Placeholder

is equal to what you ​

Placeholder

Drag these tiles and drop them in the correct blank above

Own

Owe

See

think

Multiple Choice

What is something you already own (positive cash value)?

• asset

• liability

Multiple Choice

MONEY IN A SAVINGS ACCOUNT

• asset

• liability

Multiple Choice

DIRT BIKE

• asset

• liability

Multiple Choice

What is debts you owe (negative cash value)?

• assets

• liabilities

Multiple Choice

CAR LOAN

• asset

• liability

Multiple Choice

CREDIT CARD BILL

• asset

• liability

Multiple Choice

Which term is associated with "left" or "left-side"?

• Debit
• Credit
• Plus
• Minus

Multiple Choice

Which term is associated with "right" or "right-side"?

• Debit
• Credit
• Plus
• Minus

Multiple Choice

Revenues minus expenses equals:

• Assets
• Liabilities
• Owner Equity
• Net Income

Multiple Choice

On the Income Statement, if revenues are greater then expenses, the result is:

• net income.
• net loss.

Multiple Choice

Amounts contributed to a company by investors/owners are know as:

• liabilities.
• dividends.
• retained earnings.
• stockholders' equity.

Multiple Select

Dividends are:

• an expense.
• not an expense.
• profits of a company returned to its owners.
• on the income statement.

Multiple Choice

Gross profit is calculated by...

• Revenue - Expense

• Revenue + Expense

• Revenue - Liabilities

• Revenue + Liabilities

Multiple Choice

The Income Statement lists a businesses:

• Assets and Expenses
• Owner's Equity and Revenue
• Revenue and Expenses

• Expenses and Net Assets

Multiple Choice

What is the purpose of an income statement?

• calculate the bank balance

• calculate net assets

• calculate sales

• calculate net profit

Multiple Choice

Retained earning is that portion of stockholders' equity created by earning net income and retaining the related resources in the business.

• True

• False

Multiple Choice

Imagine you're in a business class with Olivia, Samuel, and Luna. The teacher asks, 'What is the purpose of a statement of retained earnings?' How would you answer?

• To track a company's expenses

• To show the changes in a company's retained earnings over a specific period of time.

• To calculate a company's net income

• To determine a company's cash flow

Multiple Choice

What does a "Balance Sheet" list?

• Revenue, Expenses, Profit

• Assets, Liabilities, Owner's Equity

• Cash Flow, Investments, Dividends

• Sales, Purchases, Inventory

Multiple Choice

"Machines" go under what section of a "Balance Sheet"?

• Revenue

• Assets

• Expenses

• Net Profit

Multiple Choice

What is an example of a "Liability"?

• Petty Cash

• Debt

• Office supplies

• Company vehicles

Multiple Choice

A Balance Sheet shows:

• The financial position of a company at a specific point in time.

• The income and expenses over a period of time.

• The cash inflows and outflows over a period of time.

• The changes in equity over a period of time.

Multiple Choice

What is included in an Income Statement?

• Assets, Liabilities, and Equity

• Revenue, Expenses, and Net Income

• Cash Flows from Operating, Investing, and Financing Activities

• Budgeted and Actual Figures

Multiple Choice

Fill in the blank: Liabilities + Net Worth = ________.

• Assets

• Revenue

• Expenses

• Equity

Multiple Choice

What are the two categories of liabilities?

• Current liabilities and long-term liabilities

• Fixed liabilities and variable liabilities

• Tangible liabilities and intangible liabilities

• Operating liabilities and non-operating liabilities

Multiple Choice

Activities that involve the cash effects of making and collecting loans and acquiring and disposing of property, plant, and equipment are classified as:

• noncash activities.

• investing activities.

• operating activities.

• financing activities.

Multiple Choice

Which of the following statements shows the amount of cash used to pay dividends or purchase treasury stock?

• statement of financial position.

• income statement.

• statement of stockholders’ equity.

• choices 1 & 3

Multiple Choice

The operating section is the first section of the statement of cash flows.

• True

• False

Multiple Choice

Payment of dividends would come under which activity on the statement of cash flows?

• Financing

• Operating

• Investing

• None of these answer choices are correct

Multiple Choice

Receipt of interest from a Note Receivable would be reported as a cash inflow in which of the following sections:

• investing activities

• financing activities

• operating activities

• stock activities

Multiple Choice

Which of the following is an example of cash flow resulting from operating activities?

• Sale of product

• Purchase of land

• Loan repayment

• Issuing equity funds

Multiple Choice

What is a major cash out-flow entry in the Financing Activities category of the statement of cash flows?

• Sale of machinery

• Loan repayments or capital lease repayments

• Purchase of operating inputs

• Investment in personal loans to others