1. Which of the following is not one of Porter%u2019s five forces? a. Buyer Powe
ID: 2698806 • Letter: 1
Question
1. Which of the following is not one of Porter%u2019s five forces?
a.
Buyer Power
b.
Supplier Power
c.
Threat of Regulation
d.
Threat of Substitutes
ANSWER:
2. An example of an intangible asset is
a.
a patent
b.
land
c.
investment in another company
d.
raw material inventory
ANSWER:
3. Which of the following would not appear as a liability on the balance sheet?
a.
a labor contract
b.
a note due to a bank
c.
salary due employees at year-end
d.
accounts payable
ANSWER:
4. The accrual basis of accounting recognizes
a.
revenue when cash is received from customers
b.
expenses when paid
c.
revenue when all or a substantial portion is performed
d.
revenue when contracts are signed
ANSWER:
5. Which of the following is not an activity reported in the cash flows financial statement?
a.
operating
b.
investing
c.
manufacturing
d.
financing
ANSWER:
6. The accrual basis method of accounting can be best described as:
a.
The recording of transactions and adjustments so that debits equal credits.
b.
The method that equates assets with liabilities and owners%u2019 equity.
c.
The method that recognizes revenue when money is received.
d.
The method that matches incurred expenses with related revenues when they are earned.
ANSWER:
7. Current assets are defined as
a.
cash and cash equivalents.
b.
all assets expected to be quickly used by the firm.
c.
cash and other assets that the firm expects to sell or consume during the normal operating cycle of a business, usually one year.
d.
cash and other assets that the firm expects maintain for a period including the normal operating cycle of a business, usually one year.
ANSWER:
8. Which of the following is not an expense of a business?
a.
Depreciation
b.
Dividends
c.
Salaries
d.
Advertising
ANSWER:
9. Which of the following activities reported in the Statement of Cash Flows is not a financing activity?
a.
Repayment of outstanding debt.
b.
Investing in equity securities of other companies.
c.
Payment of dividends.
d.
Issuing debt.
ANSWER:
10. The primary purpose of the balance sheet is to:
a.
report the current value of the business.
b.
measure the net income of a business up to a particular point in time.
c.
report the difference between cash inflows and cash outflows for the period.
d.
report the financial position of the reporting entity at a particular point in time.
ANSWER:
11. Which of the following is not considered to be a liability?
a.
wages payable.
b.
accounts payable.
c.
notes payable.
d.
cost of goods sold.
ANSWER:
12. The two categories of shareholders' equity usually found on the balance sheet of a corporation are
a.
contributed capital and property, plant, and equipment.
b.
retained earnings and notes payable.
c.
common stock and retained earnings.
d.
contributed capital and equity securities.
ANSWER:
a.
Buyer Power
b.
Supplier Power
c.
Threat of Regulation
d.
Threat of Substitutes
Explanation / Answer
Hi,
Please find the answers as follows:
1) Option C (Threat of Regulation)
2) Option A (A Patent)
3) Option A ( A Labor Contract)
4) Option C (revenue when all or a substantial portion is performed)
5) Option C (manufacturing)
6) Option D (The method that matches incurred expenses with related revenues when they are earned)
7) Option A (cash and cash equivalents)
8) Option B (Dividends)
9) Option B (Investing in Equity Securities of other Companies)
10) Option D (report the financial position of the reporting entity at a particular point in time)
11) Option D (cost of goods sold)
12) Option C (common stock and retained earnings)
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