POB Unit 6 Quiz Review

The general accounting formula is

• Assets = Liabilities + Owner's Equity
• Assets + Liabilities = Owner's Equity
• Owner's Equity = Assets = Liabilities
• Net Income = Revenue - Expenses

Mary looked at which report to find the amount of owner's equity, assets and liabilities of his company?

• Income statement
• balance sheet
• asset records
• inventory records

Sam can find the revenue and expenses of his business at the end of year on which type of financial statement?

• balance sheet
• income statement
• budget
• owner's equity statement

Finance is

• the process of obtaining funds and using them to achieve the goals of the business.
• the process of keeping and interpreting financial records.

Working capital management is:

• management of a firm’s current balance of assets and liabilities
• the process of keeping and interpreting financial records.

Return on capital is:

• a measure of how well a business generates cash flow in relation to the capital it has already invested in itself.
• the process of obtaining funds and using them to achieve the goals of the business
• the process of keeping and interpreting financial records.

Businesses use the information collected through the accounting process to prepare accurate:

• financial statements
• purchase orders
• inventory forms

Which of the following financial statements is a "snapshot" of the business's financial performance and can capture any given moment of a business's finances

• balance sheet
• income statement