Question

Reading Business Financial Information

10-What is not true about a partnership?

Review Later

Partners cannot be held liable for a debt

The business has access to capital

Partners are held liable for the actions of one another

The business is owned by two or more people

11-Which line item usually accounts for direct labor?

Review Later

Revenue

Operating expenses

Cost of goods sold

Shareholders’ equity

12-Select the statements below which are true. Select all that apply.

Review Later

1-Depreciation and amortization are non-cash expenses

2-Business acquisitions are found in the financing activities section of the cash flow statement

3-The 3 levels of accountant reports are: audited, review engagement, and notice to management

4-A company can be profitable but experience negative cash flows

13-Select the statements below which are true. Select all that apply.

Review Later

1-Depreciation and amortization are non-cash expenses

2-Business acquisitions are found in the financing activities section of the cash flow statement

3-The 3 levels of accountant reports are: audited, review engagement, and notice to management

4-A company can be profitable but experience negative cash flows

Answer 1

10 the anser is 1 Partners cannot be held liable for a debt

11 the answer is 4 Cost of goods soldusually accounts for direct labor

12 1 -Depreciation and amortization are non-cash expenses

3-The 3 levels of accountant reports are: audited, review engagement, and notice to management

4 A company can be profitable but experience negative cash flows

Once in a while, negative income implies that your business is losing cash. Different occasions, negative income reflects poor planning of pay and costs. You can make a net benefit and have negative income. For instance, your bills may be expected before a client pays a receipt