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# Company Position Quiz Answers – Why Quiz

#### Quiz 1: Orientation

Q1. This course includes _ modules.

• 2
• 3
• 4
• 5

Q2. I am required to purchase a textbook for this course.

• True
• False

Q3. Which of the following activities is NOT required in each module?

• Watch the lecture videos
• Complete the practice quizzes
• Complete the module quizzes
• Complete the peer-reviewed assignment

Q4. The following tool(s) will help me use the discussion forums:

• Upvoting posts
• Reporting inappropriate posts
• All of the other options are correct.

Q5. If I have a problem in the course I should:

• Email the instructor
• Call the instructor
• Drop the class
• Report it to the Learner Help Center (if the problem is technical) or to the Content Issues forum (if the problem is an error in the course materials)

#### Quiz 2: Practice Quiz

Q1. When measuring the height of a building, what represents the attribute of interest?

• Cost
• Building
• Location
• Height

Q2. When measuring the speed of a cheetah, what represents the phenomenon of interest?

• Species
• Beauty
• Speed
• Cheetah

#### Quiz 3: Practice Quiz

Q1. Which financial statement serves as a substitute attribute for position?

• Neither
• Balance sheet
• Income statement

Q2. Which financial statement serves as a substitute attribute for performance?

• Neither
• Balance sheet
• Income statement

#### Company Position Quiz Answers 2

Q1. What is assigning numerals or other symbols to represent the magnitude of an attribute or phenomenon called?

• Measurement
• Numbers
• Attribute of interest
• Phenomenon

Q2. Since we cannot directly observe a baby’s happiness, what would we call a substitute way of measuring the happiness by looking at “smiles per hour”?

• Attribute of interest
• Phenomenon
• Accounting
• Substitute attribute

Q3. The attribute of a phenomenon cannot change. True or false?

• True
• False

Q4. A phenomenon can have many attributes. True or false?

• True
• False

Q5. What are the three measurement questions that are substitute attributes for financial statements themselves?

• I. What do you own?
• II. What do you know?
• III. What do you owe?
• IV. How did you perform?
• I, II, III
• I, II, IV
• II, III, IV
• I, III, IV

Q6. What is the phenomenon in the example “the height of the child”?

• Measurement
• Child
• Attribute of interest
• Height

Q7. To measure how friendly a student is, one would likely use a substitute attribute. True or false?

• True
• False

Q8. What is the characteristic of the phenomenon called?

• Measure
• Attribute
• Symbol
• Numerals

Q9. Assets, liabilities, and equity are the three components of what financial statement?

• Statement of cash flows
• Income statement
• Balance sheet
• All of the above

Q10. What are economic resources owned by the company called?

• Liabilities
• Assets
• Net income
• Equity

Q11. What are the obligations that the company has to others?

• Liabilities
• Net income
• Equity
• Assets

Q12. What is thought of as the net worth of the company because it represents the difference between assets and liabilities?

• Assets
• Net income
• Equity
• Liabilities

Q13. Which financial statement represents a picture of the company on a certain date?

• Balance sheet
• Income statement
• Balance sheet & income statement
• None of the above

Q14. Which financial statement represents transactions that occurred over a designated period of time?

• Balance sheet
• Income statement
• Balance sheet & income statement
• None of the above

Q15. Publicly traded companies are required to produce financial statements. True or false?

• True
• False

Q16. Which account on the income statement represents resources earned from normal operating activities?

• Cash
• Expense
• Asset
• Revenue

Q17. Which account on the income statement represents an outlay of resources as part of normal operating activities?

• Revenue
• Asset
• Expense
• Cash

Q18. Companies not required to produce financial statements have no incentive to generate them. True or false?

• True
• False

Q19. The company’s assets can help answer which measurement question?

• What do you own?
• What do you owe?
• How did you perform?
• All of the above

Q20. The company’s liabilities can help answer which measurement question?

• What do you own?
• What do you owe?
• How did you perform?
• All of the above

#### Quiz 1: Practice Quiz

Q1. Marketable securities represent investments that can be converted to cash quickly. True or false?

• True
• False

Q2. Prepaid expense should be presented in the financial statements as an asset. True or false?

• True
• False

#### Quiz 2: Practice Quiz

Q1. Property and equipment is an alternative name for fixed asset. True or false?

• True
• False

Q2. All fixed assets should be depreciated. True or false?

• True
• False

Q1. Inventory is listed as a current asset on the balance sheet, which means inventory should be used up within a year. True or false?

• True
• False

Q2. Which balance sheet item represents investments that can be converted to cash quickly?

• Marketable securities
• Inventory
• Accounts receivable
• Prepaid expense

Q3. Which account would NOT be listed on the balance sheet for a bakery?

• Inventory
• Sugar
• Accounts receivable
• Cash

Q4. What the company is in the business to sell determines whether an item can be presented in raw materials inventory or finished goods inventory. True or false?

• True
• False

Q5. Which is not one of the three categories of inventory that a manufacturing company would include on the balance sheet?

• Uncollectable inventory
• Finished goods inventory
• Raw materials inventory
• Work in progress inventory

Q6. A prepaid expense, such as prepaid rent, is an example of what?

• Non-current asset
• Liability
• Current asset
• Equity

Q7. Accounts receivable can be described as

• A) The amount the company is owed by its customers who purchased goods or services on account
• B) The amount the company owes to its customers due to purchasing goods or services on account
• C) Both A and B
• D) None of the above

Q8. The amount the company is owed by customers that it estimates it will NOT receive is called what?

• Accounts receivable
• Accounts payable
• Prepaid expenses
• Allowance for doubtful accounts

Q9. What kind of asset is not expected to be converted to cash or used up within a year?

• A) Current asset
• B) Non-current asset
• C) Both A and B
• D) None of the above

Q10. Which is a non-current asset?

• Property, plant, and equipment
• Cash
• Accounts receivable
• Inventory

Q11. Which is NOT a fixed asset at a running shoe store?

• Treadmill to try out shoes
• Display racks holding shoes
• Shelving for clothing
• Running shoes

Q12. What can be thought of as the estimated amount of property, plant, and equipment that the company has used up since it was first acquired?

• Accumulated depreciation
• Allowance for doubtful accounts
• Expense
• None of the above

Q13. What is the unidentifiable asset that coincides with purchasing a company for more than the value of the assets acquired?

• Patent
• Goodwill
• Property, plant, and equipment

Q14. Intangible assets cannot be listed on the balance sheet. True or false?

• True
• False

Q15. Say you just bought a company from a friend. If you bought the company’s assets for \$70,000, and the total value of the assets was actually \$50,000, what would the goodwill be reported as on the balance sheet?

• \$50,000
• \$120,000
• \$70,000
• \$20,000

Q16. In general, accounting regimes allow companies to record intangible assets that they have created themselves.

• True
• False

Q17. Which of the following is classified as a non-current asset on the balance sheet?

• A) Property, plant, and equipment
• B) Goodwill
• C) Marketable securities
• D) Both A and B

Q18. Inventory can be under current or non-current assets depending on what the company chooses to list it as. True or false?

• True
• False

Q19. Which of the following are intangible assets?

• Patents
• All of the above

Q20. Goodwill, patents, and copyrights are examples of current assets. True or false?

• True
• False

#### Quiz 1: Practice Quiz

Q1. Accrued liabilities represent an amount a company owes. True or false?

• True
• False

Q2. Accounts payable and accrued liabilities are interchangeable line items. True or false?

• True
• False

#### Quiz 2: Practice Quiz

Q1. The long-term debt line item on the balance sheet includes interest owed on the long-term debt. True or false?

• True
• False

Q2. In a transaction between a customer and a company, only the customer can acquire a liability. True or false?

• True
• False

#### Company Position Quiz Answers 3

Q1. What is a liability?

• An obligation to receive money from others
• It describes how well the company is performing.
• An obligation that a company has to others
• It describes what the company owns.

Q2. Current liabilities are not expected to require payment to be made within a year. True or false?

• True
• False

Q3. If a company receives several shipments from a supplier during a month, it can be more convenient to pay one time at the end of the month. The company will owe the supplier payment for the supplies, and the amount owed will be reported on the company balance sheet during the month as what?

• Accounts receivable
• Inventory
• Cash
• Accounts payable

Q4. Accrued liabilities are not a liability, but are actually an expense. True or false?

• True
• False

Q5. Which is NOT an example of an accrued liability?

• An obligation to pay the staff
• An obligation to the government for taxes
• An obligation to return supplies that were delivered by mistake, but remain unpaid for
• All of the above are accrued liabilities

Q6. Accrued liabilities are a current liability on the balance sheet. True or false?

• True
• False

Q7. Where is accounts payable found on the balance sheet?

• Non-current asset
• Current liability
• Non-current liability
• Current asset

Q8. What section of the balance sheet can be thought of as a company’s debt?

• Current liabilities
• Non-current liabilities
• Non-current assets
• Current assets

Q9. Obtaining a loan to buy a bakery that is in the process of making repayment would be considered a current liability since there are payments being made. True or false?

• True
• False

Q10. All debt on a company’s balance sheet is bad. True or false?

• True
• False

Q11. There is always a cash payment needed to satisfy a liability. True or false?

• True
• False

Q12. Which is a long-term liability?

• Obtaining a loan to buy a building
• Goodwill
• An account payable to a supplier
• Accrued liability

Q13. When a company has long-term debt, the debt agreement often requires the company to pay a portion of the debt each year. True or false?

• True
• False

Q14. What is an advantage to a company of taking on debt?

• Obtaining funds to grow the business
• Obtaining funds fast
• Obtaining funds to take advantage of opportunities
• All of the above

Q15. What measurement question can be answered by looking at liabilities on the balance sheet?

• What do you own?
• What do you owe?
• How did you perform?
• All of the above

Q16. If you delivered inventory to John, but John had not paid for the inventory yet, what liability account for John would increase?

• Cash
• Prepaid expense
• Accounts receivable
• Accounts payable

Q17. A dance studio that receives payment from customers to deliver children dance lessons is an example of the dance studio’s what?

• Liabilities
• Revenue
• Assets
• Expense

Q18. A company’s liability can decrease by

• The company making a payment
• The company performing a service
• The company delivering a product
• All of the above

Q19. Which is NOT a liability on the balance sheet?

• Accrued liabilities
• Long-term debt
• Accounts payable
• Inventory

Q20. What is another term for non-current liabilities?

• Long-term liabilities
• Debt
• Both of the above
• None of the above

#### Quiz 1: Practice Quiz

Q1. Preferred stockholders of a company typically have more voting rights to influence the direction of the company than common stockholders. True or false?

• True
• False

Q2. Treasury stock is related to stock that a company holds as an investment in another company. True or false?

• True
• False

#### Quiz 2: Practice Quiz

Q1. Paying out dividends increases the company’s equity. True or false?

• True
• False

Q2. The balance sheet equation requires that the difference between a company’s assets and its liabilities equals its equity. True or false?

• True
• False

#### Company Position Quiz Answers 5

Q1. Equity can also be thought of as what?

• The amount that owners of the company have a claim to
• The company’s net worth
• Assets minus liabilities
• All of the above

Q2. What are the people that contributed capital to the company in exchange for some share of ownership in the company called?

• Suppliers
• Shareholders
• Both of the above
• None of the above

Q3. What is the portion of a company’s earnings that is retained by the company and not distributed to the company’s owners called?

• APIC
• Equity
• Common stock
• Retained earnings

Q4. Which are ways that retained earnings would decrease?

• A net loss
• Payment of cash dividends
• Both of the above
• Neither – retained earnings would increase

Q5. Additional paid in capital (APIC) and common stock are listed as separate line items on the balance sheet. True or false?

• True
• False

Q6. The difference between resources the company earns and the resources it disperses during a period is what?

• Net income
• Cash
• Common stock
• Equity

Q7. Where is net income dumped at the end of each period?

• Liabilities
• Common stock
• APIC
• Retained earnings

Q8. A company’s net worth can be thought of in two parts: (1) the value that owners contributed to the company, and (2) the accumulation of what the company has earned since it began doing business. True or false?

• True
• False

Q9. Who receives payment when a company issues dividends?

• Chairman of the board
• General public
• Owners/shareholders
• Employees

Q10. Assets minus liabilities equals what?

• Revenue
• Expenses
• Net income
• Equity

Q11. What refers to how quickly an asset will be converted to cash?

• Cash flow
• Liquidity
• Balanced
• Income

Q12. In the asset section of the balance sheet, on what basis is the order of assets listed?

• Least liquid account to most liquid account
• Most liquid account to least liquid account
• Smallest account balance to largest account balance
• Largest account balance to smallest account balance

Q13. Which financial statement could also be called the statement of financial position?

• Statement of cash flows
• Income statement
• Balance sheet
• Net income

Q14. What does a company’s liabilities + owner’s equity equal?

• Gross profit
• Revenue
• Net income
• Assets

Q15. Financial statements are a representation of a company’s position and performance. True or false?

• True
• False

Q16. Which is NOT an asset?

• Accrued liabilities
• Property, plant, and equipment
• Inventory
• Prepaid expenses

Q17. If an asset is not a current asset, it is a non-current asset. True or false?

• True
• False

Q18. The three sections of the balance sheet are: assets, liabilities, and net income. True or false?

• True
• False

Q19. Which financial statement is a snapshot of the company on a particular date?

• Balance sheet
• Income statement
• Both of the above
• None of the above

Q20. The balance sheet answers the measurement questions of, what do you own? and, what do you owe? True or false?

• True
• False
##### Conclusion:

I hope this Company Position Quiz Answers would be useful for you to learn something new from this Course. If it helped you then don’t forget to bookmark our site for more Quiz Answers.

This course is intended for audiences of all experiences who are interested in learning about new skills in a business context; there are no prerequisite courses.

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