Case-Based Critical Thinking Questions

question 107

Multiple Choice

Case-Based Critical Thinking Questions
Case 7-1
Evaluate the following formulas and functions.
-Assuming that G2 contains the value FT and M2 contains the value 2,evaluate the formula and tell what value is returned: =AND(G2="FT",M2>=1) .

• A) TRUE
• B) FALSE
• C) PT
• D) PT,2

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Definitions:

Ending Retained Earnings

The amount of net income left over for the business after it has paid out dividends to its shareholders, captured at the close of an accounting period.

Revenues

The total income generated by a business from its normal business operations, including sales of goods and services, before any expenses are deducted.

Expenses

Outflows or using up of assets as a part of operations of a business to generate revenue.

Equity

The ownership interest held by shareholders in a corporation, represented by the residual assets minus liabilities.