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Kwantlen Polytechnic University
ACCT 1110
Quiz Chapter 1
Fall 2019
1.
All of the following are advantages for choosing a proprietorship for a business except:
A)
A proprietorship is a simple form of business to set up.
B)
A proprietorship gives the owner control of the business.
C)
Proprietorship receive more favorable tax treatment.
D)
Transfer of ownership is easily achieved through stock sales.
2.
Which of the following is the most appropriate and modern definition of accounting?
A)
The information system that identifies, records, and communicates the economic
events of an organization to interested users
B)
A means of collecting information
C)
The interconnected network of subsystems necessary to operate a business
D)
Electronic collection, organization, and communication of vast amounts of
information.
3.
Which of the following is not a principal type of business activity?
A)
Operating
B)
Investing
C)
Financing
D)
Delivering
4.
Buying and selling products are examples of
A)
operating activities.
B)
investing activities.
C)
financing activities.
D)
delivering activities.
5.
Resources owned by a business are referred to as
A)
stockholders' equity.
B)
liabilities.
C)
assets.
D)
revenues.
6.
Net income results when
A)
Assets > Liabilities.
B)
Revenues = Expenses.
C)
Revenues > Expenses.
D)
Revenues < Expenses.
