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Choose the best answer.

A(n) _____ is a bill listing goods or services provided and sum payment due.

invoice

balance sheet

payment

income statement
2.
Choose the best answer.

The balance sheet includes _____, _____, and _____.

income, expenses, assets

income, liabilities, shareholders’ equity

assets, income, shareholders’ equity

assets, liabilities, shareholders’ equity
3.
Choose the best answer.

Which business term implies business transactions between companies?

C2B

B2R

B2C

B2B
4.
Match the examples with the pricing methods.

Mike’s Lobster Shack decided to price meals based on where other seafood restaurants were setting prices.

Janet noticed a spike in sales for leopard print fabric, so she decided to raise prices.

Mario’s Bicycle Store decided to set prices by adding up all its costs of goods sold and adding a 40% profit margin.

5.
Choose the best answer.

If business executives desired a board meeting to be recorded, they would ask an administrator to take _____.

bullet notes

meeting minutes

treatment minutes

careful notes
6.
Complete the balance sheet equation.

​​​​assets − liabilities = _____

shareholders’ equity

costs

revenue

sales
7.
Choose the best answer.

Which of these is NOT an example of an accounting record?

expense reports

legal contracts

income statements

equity statements
8.
Choose the best answer.

Suppose a customer in a retail store slips on a broken piece of glass and sues the business for her injuries. If the business then uses insurance to protect itself, which type of insurance is it utilizing?

injury asset insurance

injury liability insurance

business liability insurance

business asset insurance
9.
Choose the best answer.

If a business decides to sell raw materials in order to generate usable cash, it is known as _____.

total loss

liquidation

turnover

asset-selling
10.
Choose the best answer.

If Roberto’s Italian Restaurant had an annual revenue of $670,000 and total assets of $335,000, what would its return on assets be?

3

2

1

0.5
11.
Choose the best answer.

The _____ ratio includes inventory, and the _____ ratio excludes inventory when determining a company’s ability to meet its financial obligations.

current; quick

current; short-term

quick; current

short-term; current
12.
Choose the best answer.

One of the most effective environmental scanning components is self-examination because it requires an honest examination of _____.

weaknesses

mistakes

faults

all of these
13.
Choose the best answer.

The income statement includes _____ and _____.

revenues; assets

liabilities; shareholders’ equity

revenues; expenses

liabilities; assets
14.
Match the examples with the asset types. Answers may be used more than once.

the words of a book

raw steel

brand value

a company car

a large client base

computer software

15.
Choose the best answer.

Knowing the _____ and _____ of one’s competitors is necessary for effective environmental scanning.

weaknesses; mistakes

strengths; weaknesses

opportunities; threats

none of these
16.
Choose the best answer.

A _____ competes based on quality, whereas a _____ competes based on price.

cost leader; price leader

quality leader; cost leader

price leader; quality leader

quality leader; consumer leader
17.
Choose the best answer.

Which of these is NOT an example of a business legal document?

articles of incorporation

employee contracts

balance sheets

permits
18.
Choose the best answer.

Which business term implies business transactions between companies and end consumers?

B2R

C2B

B2C

B2B
19.
Finish the equation.

​​​​_____ = total liabilities / shareholders’ equity

liability ratio

current ratio

quick ratio

debt-to-equity ratio
20.
Choose the best answer.

Terms and _____ are rules to which an individual or business must agree in order to use the services of an organization.

policies

rules

conditions

procedures
21.
Match the examples with the terms. Answers may be used more than once.

A baking company liquidates its leftover flour.

A construction company purchases drywall for its project.

A hair stylist earns revenue by cutting hair.

An automotive company earns interest on its bank savings.

A restaurant has to hire a roofing company to repair hail damage.

An automotive company earns revenue by selling cars.

A furniture company purchases wood to build its products.

A retail chain pays a lawyer to draft its articles of incorporation.

22.
Choose the best answer.

If a business experiences financial distress over a long enough period of time and then uses its insurance to help it recover, which type of insurance is it utilizing?

injury asset insurance

injury liability insurance

business liability insurance

business asset insurance
23.
Match the statements with the liability types. Answers may be used more than once.

A bank loans a restaurant chain $1 million to build a new store and expects payment in full within five years.

A company must pay for its company car within 12 months of purchase.

A credit union makes small loans for used cars but expects payment in full within eight months.

A raw materials supplier is willing to advance shipments to companies as long as they are paid for in full within two years.

1 answer

Here are the best answers to each of your questions:

  1. invoice
  2. assets, liabilities, shareholders’ equity
  3. B2B
    • Mike’s Lobster Shack decided to price meals based on where other seafood restaurants were setting prices. Competitive pricing
    • Janet noticed a spike in sales for leopard print fabric, so she decided to raise prices. Demand-based pricing
    • Mario’s Bicycle Store decided to set prices by adding up all its costs of goods sold and adding a 40% profit margin. Cost-plus pricing
  5. meeting minutes
  6. shareholders’ equity
  7. legal contracts
  8. business liability insurance
  9. liquidation
  10. 2 (Return on assets = Revenue / Total Assets = $670,000 / $335,000 = 2)
  11. current; quick
  12. all of these
  13. revenues; expenses
  • the words of a book: intangible asset
  • raw steel: tangible asset
  • brand value: intangible asset
  • a company car: tangible asset
  • a large client base: intangible asset
  • computer software: intangible asset
  1. strengths; weaknesses
  2. quality leader; cost leader
  3. balance sheets
  4. B2C
  5. debt-to-equity ratio
  6. conditions
  • A baking company liquidates its leftover flour. Liquidation
  • A construction company purchases drywall for its project. Expense
  • A hair stylist earns revenue by cutting hair. Revenue
  • An automotive company earns interest on its bank savings. Revenue
  • A restaurant has to hire a roofing company to repair hail damage. Expense
  • An automotive company earns revenue by selling cars. Revenue
  • A furniture company purchases wood to build its products. Expense
  • A retail chain pays a lawyer to draft its articles of incorporation. Expense
  1. business asset insurance
  • A bank loans a restaurant chain $1 million to build a new store and expects payment in full within five years. Long-term liability
  • A company must pay for its company car within 12 months of purchase. Short-term liability
  • A credit union makes small loans for used cars but expects payment in full within eight months. Short-term liability
  • A raw materials supplier is willing to advance shipments to companies as long as they are paid for in full within two years. Long-term liability

If you have further questions or need additional assistance, feel free to ask!