IBM Revision - Session 12

In which order do the stages of the product life-cycle occur?

• a. Growth, introduction, maturity, decline

• b. Introduction, maturity, slowdown, decline

• c. Innovation, distribution, maturity, decline

• d. Introduction, growth, maturity, decline

• e. Introduction, growth, slowdown, decline

Mullin, Inc. purchases supplies such as paper and seat covers directly from manufacturers and then sells them to other firms. Mullin, Inc. is a(n) .........

• a. retailer

• b. wholesaler

• c. functional middleman

• d. agent

• e. producer

All of the following are acceptable ways of stating the accounting equation except .........

• a. owners' equity = assets − liabilities.

• b. assets = liabilities + owners' equity.

• c. owners' equity − liabilities = assets.

• d. assets − liabilities = owners' equity.

• e. assets = shareholders' equity + liabilities.

Debts that are to be repaid in two years are referred to as .........

• a. expenses.

• b. current assets.

• c. long-term liabilities.

• d. fixed assets.

• e. current liabilities.

Television sets that Best Buy owns for selling to its customers are classified as ......

• a. equipment.

• b. machinery.

• c. receivables.

• d. merchandise inventory.

• e. prepaid merchandise.

Salaries payable, accounts payable, and taxes payable are examples of .........

• a. expenses.

• b. current liabilities.

• c. current assets.

• d. long-term liabilities.

• e. owners' equity.

Trademarks and goodwill are both .........

• a. current assets.

• b. liabilities.

• c. sources of revenue.

• d. intangible assets.

• e. fixed assets.

KYZ Radio pays salaries, rent, insurance, and utilities each month. These are all .........

• a. current assets.

• b. operating expenses.

• c. cost of merchandise sold.

• d. fixed liabilities.

• e. None of these answers is correct.

Each month, Bath & Body Works pays employees wages, telephone bills, and salaries to accountants. These are all considered .........

• a. cost of goods sold.

• b. gross profit.

• c. sales allowances.

• d. operating expenses.

• e. current assets.

The balance sheet is composed of .........

• a. owners' equity, assets, and liabilities.

• b. expenses, revenue, and net income.

• c. revenue, expenses, and owners' equity.

• d. assets, expenses, and net income.

• e. assets, liabilities, and revenues.