1. Current Liabilities are _____________________________.

listed before assets on the balance sheet

obligations that must be settled within one year or the operating cycle, whichever is longer

obligations that must be settled within one year or the operating cycle, whichever is shorter

not described by any of these answers

2. The Unearned Revenue account is used to record ____________________.

purchase orders received from customers
loans made to customers so they can purchase products
the sale of a product to a customer
a deposit received from a customer in advance for a future product or service.

3. A contingent liability like a lawsuit is required to be recorded when the probability of an unfavorable outcome is __________________.
probable
possible
remote
anybody's guess

4. An employer is required to match certain payroll taxes like ________________.
Unemployment taxes
Workers compensation
Social security
None of the taxes listed here

5. If a firm plans to conduct business in multiple states what organization form is required?
Corporation
Partnership
No special form of organization is required
Sole proprietorship

6. The form of business organization that has a perpetual existence is the ___________.
corporation
sole proprietorship
partnership
none of these

7. The concept of mutual agency in relationship to a partnership means______________.
each partner must use the same insurance agent
a partner cannot financially obligate the other partners in the partnership without their knowledge
there is no such concept that impacts a partnership
a partner can financially obligate all partners in the partnership without their knowledge

8. A sole proprietor __________________.
Files a separate tax return
Has unlimited liability for debts of the firm
Has limited liability for debts of the organization
Pays no Social Security or Medicare taxes

9. The journal entry needed when a partner contributes assets to the partnership would include ____________________.
a debit to owners capital and a credit to an asset account
a debit to an asset account and a credit to common stock
a debit to an asset account and a credit to owners capital
a debit to equity and a credit to owners capital

10. The term par value in a business organization refers to_________________.

the legal capital requirement per share of stock
the owners golf handicap
the legal liability of a corporation in the event of a lawsuit
none of the stated explanations