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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions:

1. Which of the following best describes the relationship between a firm's assets, liabilities, and owners' equity?

A) Net worth
B) An annual report
C) The statement of cash flows
D) The accounting equation

2. An established company wants to find applicants who will stay with the company for at least one year if hired. Which of the following strategies is most effective in working toward the goal?

A) Placing job ads in trade publications
B) Rewarding current employees for referrals
C) Advertising job opportunities online
D) Encouraging mainly electronic applications

3. Under ordinary circumstances, the average amount of unemployment in an economy is called the

A) frictional rate of unemployment
B) natural rate of unemployment
C) typical rate of unemployment
D) cyclical rate of unemployment

4. A company's financial statements show the following for the fiscal year: total assets of $1,200,000, total liabilities of $750,000, net income of $150,000, and dividends paid of $50,000. The company has no preferred stock, and the beginning retained earnings were $200,000. What is the company's ending retained earnings?

A) $400,000
B) $350,000
C) $300,000
D) $250,000

5. Which of the following types of statements is referred to as a picture of a company in the future?

A) Mission statement
B) Value statement
C) Closing statement
D) Vision statement

Solutions: