22 Questions
Which one of the following is the correct definition of the accounting equation?
Assets plus Liabilities equals Owner's Equity
What does the term 'accounts payable' refer to?
An unwritten promise to pay creditors for property purchased on credit
What does the term 'amortization' mean?
The paying off of a debt in regular installments over a period of time
Which one of the following is a definition of 'break-even analysis' based on the text?
The point at which total sales revenue equals total operating costs
Which one of the following is a definition of 'cash flow' based on the text?
The amount of cash a company generates and uses during a period
Which one of the following is a definition of 'corporation' based on the text?
An entity that has a distinct existence separate and apart from the existence of its individual members
Which one of the following is a definition of 'current ratio' based on the text?
Current assets divided by current liabilities
Which federal legislation created the governmental agency responsible for regulating and enforcing safety and health matters for most United States employees?
Occupational Safety and Health Act (OSHA)
What is the term for a line of credit that may be used over and over again up to a certain borrowing limit?
Open-end Credit (revolving account)
What are costs related to marketing and selling a firm’s product or service, general and administrative expenses, and depreciation called?
Operating expense (overhead expense)
What is the term for a comparison of profit and expense items in the income statement expressed as a percentage of sales income, which can be compared to industry standards to measure the possible growth of a business?
Ratio analysis
Which one of these is the definition of job analysis?
The process of determining the critical components of a job for purposes of selecting, training, and rewarding personnel
Which one of these is the definition of net income?
The difference between gross profit and expenses when gross profit is larger
Which one of these is the definition of liquidation value approach?
The anticipated value of an asset that would be realized in case of liquidation of the business
Which one of these is the definition of independent contractor?
A person who agrees to perform a service for a fee and is not subject to the control of those for whom the service is performed
Which of the following is the correct definition of depreciation?
The loss in value of a fixed asset due to wear and tear and the passage of time
Which of the following is the correct definition of earnings before interest, taxation, depreciation, and amortization (EBITDA)?
A firm's profits after subtracting cost of goods sold and cash operating expenses, but before subtracting interest expense, taxes, depreciation, and amortization
Which of the following is the correct definition of equal employment opportunity?
Federal legislation designed to eliminate employment discrimination based on race, color, religion, sex, or national origin
Which of the following is the correct definition of fixed expenses?
A cost that, for a given period of time and range of activity, called the relevant range, does not change in total, but becomes progressively smaller on a per unit basis as volume increases
Which one of the following statements is true about variable expenses?
Variable expenses are costs that fluctuate in direct proportion to changes in total activity or volume.
Which one of the following definitions best describes the term 'useful life'?
Useful life refers to the estimated lifespan of a fixed asset.
Which one of the following statements accurately describes the purpose of the W-2 form?
The W-2 form is a report furnished by the employer for each employee indicating gross earnings and deductions.
Test your knowledge of Human Resource Management and Immigration Reform Act with this quiz. Learn about the process of acquiring and managing qualified employees, as well as the federal legislation related to job applicant screening.
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