Chapter 1Practice Materials.docVIP

MULTIPLE CHOICE Chapter 1 Practice Materials 1. Profit is the difference between a. assets and liabilities b. the incoming cash and outgoing cash c. the assets purchased with cash contributed by the owner and the cash spent to operate the business d. the assets received for goods and services and the amounts used to provide the goods and services ANS: D DIF: Easy OBJ: 01-01 NAT: AACSB Analytic | AICPA FN-Measurement 2. Most businesses in the United States are a. sole proprietorships b. partnerships c. corporations d. separate entities ANS: A DIF: Easy OBJ: 01-01 NAT: AACSB Analytic