Business/Marketing Review

What are assets?

• Resources or things of value that are owned by a company.

• A person who helps guide a business though the process of creating a balance sheet.

• A balance sheet

• Capital expenditures

Choose the answer that best describes company assets.

• Cash, accounts receivable, inventory, investments, land, buildings, and equipment.

• Cash, Accounts payable, accounting functions, return on investment, cost of goods sold

• Accounts receivable, accounts payable, inventory, advertising, just in time inventory

• A company's only asset is cash

What are liabilities that a company would have?

• Liabilities can be broken down into the basic acounting function Assets = Liabilities X Cash

• Liabilities can be broken down into the basic acounting function Liabilities = Assets X Cash

• The moral and economical response a company may have to any legal situation it may encounter while doing business

• Legal responsibilities and financial obligations the company incurs during the operation of business

List three liabilities a grocery store might have.

• Accounts receivable, income taxes receivable, wages and salaries receivable

• Accounts payable, income taxes payable, wages and salaries payable

• Cash, inventory, accounts receivable

• By the nature of its organization as a Corporation a grocery store would never incur liabilities

What is business equity?

• A policy each business must develop that outlines the policies and procedures of a business.

• The ability to treat all employees fairly on a day to day basis.

• It is the difference between what a business is worth (the business' assets) minus what the business owes (the debts and liabilities).

• The absolute worth of a business, the cash value regardless of any financial liabilities.

What is business debt?

• Financial liabilities of a company

• Cash on hand for a business

• The total of all cash on hand and liabilities

• Debt equals the liabilities minus inventory on hand

What is opportunity cost?

• A decrease in costs for any opportunity presented to the business.

• The increase in cost for any opportunity presented to the business.

• The realization of a potential gain, for example, you can't purchase a product newly released to the market because all your operating capital is tied up in inventory.

• The loss of a potential gain, for example, you can't purchase a product newly released to the market because all your operating capital is tied up in inventory.

Acme Industries purchased 10,000 widgets to get a 3% discount on the widgets. Acme industries is now not able to purchase the new and improved widget because it has a high percentage of operating capital tied up in inventory. This is an example of

• Asset burgeoning

• Asset reallocation

• Opportunity cost

• Cost of doing business

• Cost of goods sold

Social security tax is imposed by

• City government

• State government

• County government

• Federal government

The rate for Medicare tax is

• 1.45%

• 14.5%

• 45.1%

• 0.00145%