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Other Measures Of Business Activity
Test Description: Review for First Semester Final
Instructions: Answer all questions to get your test result.
1) Money spent by a business for an item that will be used over a long period
A
Capital spending
B
capital equipment
C
capital research
D
capital projects
2) Represents ownership in a corporation.
A
Stock
B
Note
C
Bond
D
CD
3) represents a DEBT for an organization
A
Gift Card
B
Credit Card
C
Bond
D
Stock
4) Our government currently has a
A
Budget Surplus
B
Profit
C
Budget Deficit
D
National Debt
5) When a government spends less than it takes in, it is called a
A
Budget Deficit
B
Crisis
C
Miracle
D
Budget Surplus
6) Common borrowing methods of a business are
A
mortgages
B
All of the above
C
bonds
D
loans
7) People commonly use the following to finance their purchases
A
home mortgages
B
credit cards
C
All of the above
D
auto loans
8) The total amount owed by the federal government is the
A
Consumer Debt
B
Budget Deficit
C
National Debt
D
Budget Surplus
9) Equity refers to
A
borrowing to finance a capital project
B
reduced spending by government
C
increased government taxes
D
ownership in a company or other asset
10) Which of the following would most likely cause a budget surplus for government?
A
higher spending
B
lower spending
C
lower taxes
D
higher borrowing
*select an answer for all questions
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