IntroBF-Topic 2

All of the following are advantages for a sole proprietorship, EXCEPT:

• he enjoys 100% profits.

• sole proprietorship has lower operating cost.

• he can make all decisions.

• he has to hire auditor to check financial statements prepared by business.

This financial statement contains information about assets, liabilities and owner's equity. It is a

• Statement of Comprehensive Income.

• Statement of Financial Position.

• Statement of Changes in Equity.

• Statement of Cash Flows.

In an income statement, revenue less cost of goods sold is equal to

• gross profit.

• operating profit.

• net profit.

For a statement of cash flows, the purchase of a machinery belongs to __________ activity.

• operating

• investing

• financing

All of the products belong to money market, EXCEPT:

• treasury bills (T-bills).

• treasury bonds (T-bonds).

• certificate of deposits (CD).

• bankers' acceptance (BA).

The primary function in capital market refers to

• enables firm to raise finance by issuing Initial Public Offering (IPO).

• buy or sell their investment easily.

State one information that you learn for today's lesson.

Income Statement is also known as

• Statement of Cash Flows

• Statement of Financial Position

• Statement of Changes in Equity

• Statement of Comprehensive Income

Name a stock market that you know.

The accounting equation is

• Assets = Liabilities + Owner's Equity

• Assets = Capital + Drawings

• Assets + Liabilities = Owner's Equity

• Assets = Liabilities - Owner's Equity