Module 5 Quiz

Question 1

Rent is an example of

Answer 1

fixed expense

Question 2

The ability to collect account may determine the difference between success and failure for a small business

Answer 2

true

Question 3

Overhead is referred to as a point at which total revenue equals total cost

Answer 3

false
break-even point

Question 4

Rent, salaries and insurance expenses are actually identified as fixed expenses

Answer 4

true

Question 5

Supervisory salaries are an exdample of variable expenses

Answer 5

false

Question 6

Income received but not yet earned is a

Answer 6

deferred income

Question 7

Which of these does not appear on a balance sheet?

Answer 7

proprietorship

Question 8

Which of these does not qualify as a current asset?

Answer 8

Land

Question 9

The things of value owned by a business

Answer 9

Assets

Question 10

Supplies and utility expenses are identified as variable costs

Answer 10

true

Question 11

The difference between total sales and sales returns and allowances is

Answer 11

Net sales

Question 12

Liabilities are all the a funeral director

Answer 12

owes

Question 13

The accounts receiveable turnover helps to tell a business how well their accounts receivables are coming in

Answer 13

true

Question 14

Another term for a profit and loss statement is

Answer 14

income statement

Question 15

Advertising expense would be reflected on the

Answer 15

income statement

Question 16

A point in business operation whereby total sales revenue equals total costs

Answer 16

Break-even point

Question 17

A building and or land are examples of intangible fixed assets

Answer 17

false
tangible fixed assets

Question 18

A study of the balance sheet of a business enterprise will indicate whether or not the sales volume is on the upgrade or downgrade

Answer 18

false

Question 19

Which of the following is an intangible asset?

Answer 19

name of the business and goodwill

Question 20

The difference between net sales and cost of goods sold

Answer 20

Gross margin

Question 21

The difference between current assets and current liabilities

Answer 21

working capital

Question 22

The amount of revenue from the dale of funeral services would be shown on the

Answer 22

income statement

Question 23

Fixed capital is another name for circulating capital

Answer 23

false
working capital

Question 24

Long-term capital invested in the business

Answer 24

fixed capital

Question 25

Property of relatively permanent nature used in the operation of a business and not intended for resale is called

Answer 25

Fixed asset

Question 26

The difference between cost of goods sold and their selling price is

Answer 26

gross profit

Question 27

The current asset items consisting of cash, inventories, and accounts receivables is known as

Answer 27

circulating capital

Question 28

Debts that are not due and payable within a year

Answer 28

Fixed liabilities

Question 29

Supplies and taxes are examples of the fixed expenses a business may have

Answer 29

false? not sure because taxes could be fixed or variable, but usually supplies are considered variable