A. Are the means organizations must use to pay for resources.
B. Involve the acquiring and disposing of resources that an organization uses to acquire and sell its products or services.
C. Involve defining the ideas, goals, and actions of an organization.
D. Are the carrying out of an organization's plans.
E. Involve using resources to research, develop, purchase, produce, and market products and services.
92. Operating activities:
A. Are the means organizations must use to pay for resources like land, buildings, and equipment.
B. Involve using resources to research, develop, purchase, produce, distribute, and market products and services.
C. Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services.
D. Are also called asset management.
E. Are also called strategic management.
93. The major activities of a business include:
A. Operating, investing, making a profit
B. Investing, making a profit, operating
C. Making a profit, operating, borrowing
D. Operating, investing, financing
E. Investing, making a profit, financing
94. An example of an investing activity is:
A. Paying wages of employees.
B. Paying dividends.
C. Purchasing land.
D. Selling inventory.
E. Contribution from owner.
95. Net income:
A. Decreases equity.
B. Represents the amount of assets owners put into a business.
C. Equals assets minus liabilities.
D. Is the excess of revenues over expenses.
E. Represents the owners' claims against assets.
96. If equity is $300,000 and liabilities are $192,000, then assets equal:
97. Resources owned or controlled by a company that are expected to yield benefits are:
D. Stockholder's equity
98. Increases in retained earnings from a company's earnings activities are:
D. Stockholder's equity
99. Net income is:
A. Assets minus liabilities.
B. The excess of revenues over expenses.
C. An asset.
D. The same as revenue.
E. The excess of expenses over retained earnings.
100. The difference between a company's assets and its liabilities is:
A. Net income
E. Net loss
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