2.	Which of the following is the most appropriate and modern definition of accounting?
	A)	The information system that identifies, records, and communicates the economic events of an organization to interested users.
	B)	The distribution of information to managers.
	C)	The interconnected network of subsystems necessary to operate a business.
	D)	Electronic collection, organization, and communication of vast amounts of information.

3.	The three ways that ratios can be expressed are
	A)	as a decimal, a whole number, and as a proportion.
	B)	as a dollar amount, a rate, and as a proportion.
	C)	as a percentage, a rate, and as a simple proportion.
	D)	not known.

4.	Which activities involve putting the resources of the business into action to generate a profit?
	A)	Delivering
	B)	Financing
	C)	Investing
	D)	Operating

5.	A business organized as a separate legal entity is a
	A)	sole proprietorship.
	B)	corporation.
	C)	government unit.
	D)	partnership.

6.	Expenses are incurred
	A)	to generate revenues.
	B)	to produce assets.
	C)	to produce liabilities.
	D)	only on rare occasions.