Free Business-Education-Content-Knowledge-5101 – Praxis Business Education: Content Knowledge (5101)Exam Practice Test Question

Select an option, then click Submit answer.

• ○ Balance sheet reports position
• ○ Income statement shows performance
• ○ Cash flow statement summary
• ○ Statement of retained earnings

Select an option, then click Submit answer.

• ○ Assets equal revenue minus expenses
• ○ Assets equal liabilities plus equity
• ○ Equity equals revenue plus assets
• ○ Liabilities equal assets plus revenue

Select all that apply, then click Submit answer.

• ○ Revenues earned during period
• ○ Expenses incurred during period
• ○ Total assets owned outright
• ○ Owner withdrawals during period

Select an option, then click Submit answer.

• ○ Cash and service revenue
• ○ Equipment and owner capital
• ○ Supplies and accounts payable
• ○ Supplies expense and cash

Answer is in the explanation below.

Select an option, then click Submit answer.

• ○ Debt ratio measures leverage
• ○ Profit margin measures profitability
• ○ Inventory turnover measures efficiency
• ○ Current ratio measures liquidity

Select an option, then click Submit answer.

• ○ Planning and controlling finances
• ○ Recording daily business transactions
• ○ Preparing annual tax returns
• ○ Auditing external financial statements

Answer is in the explanation below.

Select an option, then click Submit answer.

• ○ Reward for saving money
• ○ Cost of using credit
• ○ Fee for opening account
• ○ Charge for late payment

Select all that apply, then click Submit answer.

• ○ Accounts payable due soon
• ○ Mortgage payable due later
• ○ Wages payable due soon
• ○ Bonds payable due later

Select all that apply, then click Submit answer.

• ○ Facing the speaker directly
• ○ Asking clarifying questions politely
• ○ Distractions in the environment
• ○ Prejudging the speaker early

Answer is in the explanation below.