Chapter 1 Quiz
Question 1
A business organized as a separate legal entity owned by stockholders
is a partnership.
Question 2
Accounting communicates financial information about a business to
both internal and external users.
Question 3
The primary purpose of the statement of cash flows is to provide
information about the cash receipts and cash payments of a company
for a specific period of time.
Question 4
One way of stating the accounting equation is: Assets + Liabilities =
Stockholders‘ Equity.
Question 5
Claims of creditors and owners on the assets of a business are called
liabilities.
Question 6
A business organized as a corporation
Question 7
The accounting equation may be expressed as
Question 8
Which of the following activities involves collecting the necessary
funds to support the business?
Question 9
Which of the following is an asset?
Question 10