BAF Ch 1 & 2 Review

A medical clinic is considered to be a merchandising business.

• True

• False

A non-profit organization is any firm that has recently lost money on its operations.

• True

• False

A service business never has physical products available for sale.

• True

• False

It is possible for a corporation to have one owner (shareholder).

• True

• False

A good accounting system should provide adequate information for the use of:

• the management of the firm

• creditors

• the government

• all of the above

Which is not a merchandising firm?

• Sobey's

• Canadian Tire

• First Choice Haircutters

• Best Buy

A business with more than one owner with unlimited liability is called:

• a sole proprietorship

• a partnership

• a corporation

• a franchise

A business called Holiday Homes Ltd. is organized as a:

• sole proprietorship

• partnership

• corporation

• producer/manufacturer

The financial position of a business is:

• the difference between assets and liabilities

• represented by the assets, liabilities, and capital

• the same as the net worth of the business

Which one of the following is not true?

• A - OE = L

• A - L = OE

• A + L = OE

• A = L + OE