The financial record that summarizes the income and expenses of the business over time is the ______.

A) income statement
B) balance sheet
C) statement of retained earnings
D) statement of cash flows

Refer to Scenario 10.2. Suppose that a tax of $5 for each unit produced is imposed by state government. What is the profit maximizing level of output?

A) 0
B) 90
C) 95
D) 100
E) none of the above

Net income reported for the current year was $222,000.Depreciation expense was $35,000.Accounts Receivable and Inventories increased $4,000 and $7,000, respectively.Prepaid Expenses and Accounts Payable decreased $3,000 and $9,000, respectively.Using the indirect method, how much cash was provided by operating activities?

A) $170,000
B) $180,000
C) $240,000
D) $258,000

_____ assumes that economic decisions are influenced by human behavior.

A) Rational economics
B) Socialism
C) Capitalism
D) Rational capitalism
E) Behavioral economics

Dan Sullivan, a consultant to entrepreneurs, argues that goals should be both real and realizable, typically not the case with many entrepreneurs.

On October 1 2017 Dakota Company issued an $800000 10% nine-month interest-bearing note. If the Dakota Company is preparing financial statements at December 31 2017 the adjusting entry for accrued interest will include a:

A) credit to Notes Payable of $20000.
B) debit to Interest Expense of $20000
C) credit to Interest Payable of $40000.
D) debit to Interest Expense of $30000.