USAT-COM MCQs

An invoice records the goods supplied, prices, and amount payable.

A partnership is formed when persons agree to carry on a business and share results.

Limited liability restricts owner exposure according to the legal form.

Distribution moves goods through channels to consumers.

Net working capital is current assets less current liabilities.

A cheque directs a bank to make payment from an account.

Insurance transfers covered risk in return for a premium.

Capital markets finance longer-term investment through securities.

E-commerce conducts commercial transactions digitally.

Opportunity cost is the benefit sacrificed by choosing one alternative over the next best.

A liability requires the entity to transfer an economic resource.
It results from a past transaction or event.

Equity is the owners' residual claim on net assets.
It increases through investment and profit and decreases through withdrawals and losses.