If a company sells merchandise with credit terms 2/10 n/60, the credit period is 10 days and the discount period is 60 days. ( )
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A partnership ( )
A. Is also called a sole proprietorship.
B. Has unlimited liability for its partners.
C. Has to have a written agreement in order to be legal.
D. Is a legal organization separate from its owners.
An example of an operating activity is: ( )
A. Paying wages.
B. Purchasing office equipment.
C. Borrowing money from a bank.
D. Paying off a loan.
Creditors' claims on the assets of a company are called: ( )
A. Net losses.
B. Expenses.
C. Revenues.
D. Liabilities.
The difference between a company's assets and its liabilities, or net assets is: ( )
A. Net income.
B. Expense.
C. Equity.
D. Revenue.
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