1. Since its founding 5 years ago ABAX Corp. has the following history of Net Income;

Year 1: - $100k

Year 2: - $150k

Year 3: - $200k

Year 4: - $50k

Year 5: + $150k

During this time the company paid no dividends & didn't repurchase any of its own stock.

What is the current value for Retained Earnings?

A. + $100k

B. - $350k

C. + $150k

2. The two main methods of bookkeeping and accounting (often called the accounting basis) are 1) the cash method, and 2) the...

A. debit method.

B. depletion method.

C. accrual method.

3. The total amount of stockholders' equity reported on the balance sheet is frequently referred to as a company's "book value". This value corresponds to the price you would have to pay to acquire the company.

A. True

B. False

4. The corporation came into existence to solve what business challenge?

A. The need for large amounts of capital.

B. To reduce legal and financial risks for the business and its shareholders.

C. Both