Question 1

Which of the following legislative acts created the Securities and Exchange Commission?

1. Federal Trade Commission Act of 1933
2. Dealers Trust and Assistance Act of 1933
3. Bond Trading Act of 1934
4. Securities and Exchange Act of 1934

Question 2

Which of the following calculations is a formal expression of the accounting equation?

1. assets + liabilities = owners' equity
2. assets - owners' equity = liabilities
3. assets/liabilities = owners' equity
4. assets = liabilities + owners' equity
5. assets * liabilities = retained earnings

Question 3

What is it called when a company offers a stock for sale to the general public for the very first time?

1. primary market
2. durability
3. preferred stock
4. initial public offering

Question 4

The last step in the accounting cycle is to:

1. analyze financial statements and management reports
2. prepare financial statements
3. post entries to ledger
4. prepare trial balance
5. analyze business transaction documents