FUNDAMENTALS OF ACCOUNTING

1.Which type of business organization is a separate legal entity whose owners are not personally liable for the debts of the business?

a)Corparation

b)Partnership

2. Which of these best describes a balance sheet?

a)listing of balance

b)A recordof closing entries

3.In whole farm planning it is assumed that when _____________________ is maximized, total profit is maximized

a)total gross

b)totalgross income

4. If the interest rate on debt is higher than ROA, then a firm will __________ by increasing the use of debt in the capital structure.

a)change the ROE in an indeterminable

b)increase the ROE