International Business

Chapter 13: Accounting and Financing Practices

Practice Tests

1.
What are the two basic financial reports used by accountants to study the financial well-being of a company?
A)audit report and balance sheet
B)income statement and balance sheet
C)audit report and accounting cycle
D)none of the above
2.
Assets minus liabilities equals
A)equity.
B)balance.
C)net income.
D)accounting.
3.
What is revenue?
A)expenses of a business
B)debt of a business
C)income for a business
D)all of the above
4.
What factor does not affect income when a company operates in more than one country?
A)exchange rate
B)debt
C)inflation
D)disclosure
5.
How often can exchange rates vary?
A)daily
B)annually
C)weekly
D)rarely
6.
What is the difference between the current cost and the historic cost?
A)The current cost is always higher.
B)The historic cost is always higher.
C)The current cost is what it would cost to replace the item, and the historic cost is the original purchase price.
D)none of the above
7.
The type of accounting that adjusts the amounts on financial reports to reflect a country's inflation rate is known as
A)base-year accounting.
B)expense accounting.
C)cost accounting.
D)all of the above.
8.
If a business asset's value increases over time, its value
A)depreciates.
B)apprehends.
C)deflates.
D)none of the above.
9.
Name two basic types of stock sold in the United States?
A)common and preferred
B)common and non-profit
C)non-profit and trade
D)none of the above
10.
A corporation's written pledge to repay a specific amount of money along with interest to an investor is known as
A)an asset.
B)common stock.
C)preferred stock.
D)a bond.
Glencoe Online Learning CenterBusiness Administration HomeProduct InfoSite MapContact Us

The McGraw-Hill CompaniesGlencoe

Please read our Terms of Use and Privacy Policy before you explore our Web site. To report a technical problem with this Web site, please contact the Web Producer.