1. The type of business organization that can continue indefinitely is known as a:

1. sole proprietorship.
2. partnership.
3. corporation.
4. None of the above

2. Accounts Payable had a normal starting balance of $600. There were debit postings of $350 and credit postings of $200 during the month. The ending balance is

1. $750 credit.
2. $750 debit.
3. $450 debit.
4. $450 credit.

3. Which of the following is NOT part of the Purchasing function?

1. Reconciling the bank account
2. Preparing a Purchase Requisition
3. Recording a payment made to a creditor
4. Verifying the accuracy of a creditor's invoice

4. Which of the following is correct when speaking about a businesss assets?

1. Assets are things of value owned.
2. Assets must always equal Liabilities.
3. Assets are shown at their current value.
4. Assets are disclosed on the Income Statement.