1) Which of the following is an intangible asset? a) copyrights b) patents c) trademarks d) all of the above 2) Which of the following equations is correct? a) Assets + Capital = Capital b) Liabilities - Capital = Assets c) Capital = Assets + Liabilities d) Capital = Assets - Liabilities 3) Which of the following is an asset of a firm? a) the capital of the firm b) an overdrawn balance on the firm's bank account c) computer equipment owned by the firm d) money owed by the firm to one of its suppliers in respect of goods purchased on credit 4) Which of the following is not subject to depreciation? a) Equipment b) Land c) Machinery d) Building 5) Inventories are assets which are a) in the form of materials or supplies to be consumed in the production process or in the rendering of services b) held for sale in the ordinary course of business c) in the process of production for such sale. d) all of the above 6) The economic resources that a business owns and expects to be useful to the enterprise are called _____ a) owner's equity b) liabilities c) receivable d) assets 7) The statement of financial position is another name for the ______ a) statement of owner's equity b) income statement c) balance sheet d) cash flow statement 8) Which form of business organization is owned by stockholders? a) proprietorship b) partnership c) corporation d) cooperative 9) Claims against debtors supported by promissory note. a) notes receivable b) accounts receivable c) interest receivable d) accrued income 10) An exclusive legal right granted by the government for an invention to enable its holder to manufacture, sell and control an item or process. a) patent b) copyright c) trademark d) franchise

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