What offer was made?

• $100,000 for 15% stake

• $150,000 for 10% stake

• $100,000 for 20%

• No offer was made

Which side of a T-account represents the debit side?

• Left side

• Right side

• Top side

• Bottom side

What does a credit entry in a T-account typically indicate for liability accounts?

• An increase

• A decrease

• No change

• An error

In double-entry bookkeeping, what does the balance of a T-account represent?

• The difference between credits and debits

• The sum of credits and debits

• The total credits

• The total debits

What is the primary purpose of the income statement in financial reporting?

• To show the company's financial position at a specific point in time

• To report the company's financial performance over a specific period

• To detail the company's cash inflows and outflows over a specific period

• To list the company's shareholders' equity

Which financial statement is prepared first?

• Balance Sheet

• Income Statement

• Cash Flow Statement

• Statement of Retained Earnings

How is the net income calculated on the income statement?

• Total Revenues minus Total Expenses

• Total Assets minus Total Liabilities

• Cash Inflows minus Cash Outflows

• Current Assets minus Current Liabilities

What type of insurance risk involves natural disasters such as earthquakes and floods?

• Liability Risk

• Property Risk

• Operational Risk

• Strategic Risk

What type of business insurance covers claims of bodily injury or property damage caused by the business's operations?

• Product Liability Insurance

• Professional Liability Insurance

• General Liability Insurance

• Commercial Property Insurance

Which business insurance is specifically designed to protect the assets and earnings of a business in the event of a lawsuit?

• Workers' Compensation Insurance

• Commercial Property Insurance

• Directors and Officers Insurance

• Professional Liability Insurance