Business Quiz Questions and Answers

Example Questions From the Test

• 1Which equation must a correctly prepared balance sheet satisfy?
  • Revenue minus expenses equals assets.
  • Assets plus liabilities equals equity.
  • Cash equal revenue plus profit.
  • Assets equal liabilities plus equity.
• 2What is the usual purpose of limited liability for owners of a corporation?
  • It guarantees that the company will never make a loss.
  • It removes the company's obligation to repay its debts.
  • It generally limits an owner's exposure to the amount invested.
  • It allows owners to ignore contracts signed by the company.
• 3A retailer earns $120,000 in sales revenue and reports $70,000 in cost of goods sold. What is its gross profit?
  • $120,000
  • $70,000
  • $50,000
  • $190,000