Unit 2 - Test Review (Financial Statement and Marketing)

Buying a space in the newspaper to sell an item is an example of:

• advertising.
• promotion.
• publicity.
• public relations.

Being in a permanent location is a DISADVANTAGE of which media?

• Display window
• Magazine
• Radio
• Telephone directory

A MAJOR difference between a good and a poor advertisement is that a good advertisement:

• is complex and formal.
• is simple and accurate.
• offers plants not adapted to the area.
• uses misleading prices.

A MAJOR difference between a good and poor advertisement is that a poor advertisement:

• does not describe benefits to customers.
• does not make misleading statements.
• suggests benefits of buying the product.
• uses simple and accurate descriptions.

If 18 plants are needed for a landscaping job and each plant costs $20.00, what is the total cost of the plants?

• $100
• $180
• $200
• $360

The loss in value of buildings and machinery due to age, use, or change in market demands is

• A. Assets.
• B. Depreciation.
• C. Inventory
• D. Profit

Something tangible of value that a person or a business owns is:

• A. A liability.
• B. An asset.
• C. Debt.
• D. Net worth.

Debts that a business owes are:

• A Assets.
• B Equity.
• C Liabilities.
• D Net worth.

A checking account is an example of a:

• A Non-Current Liability
• B Current Liability
• C Non-Current Asset
• D Current Asset

Net worth is:

• A Current assets minus current liabilities.
• B Inventory plus depreciation.
• C Total assets minus total liabilities.
• D Total assets plus total liabilities.