Accounting and Finance

What is accounting?

• Method of reporting financial activity of a business.
• Written reports that describe the financial health of a company.
• Professional who produces and examines financial records, prepares financial reports and tax returns, etc.
• Anything of value owned by the business.

Which of the following is NOT a component that is included in the Income Statement?

• Revenue
• Expenses
• Net Income/Loss
• Assets

Which of the following is the accounting equation?

• Assets=Liabilities+Owner's Equity
• Assets=Liabilities-Owner's Equity
• Liabilities=Assets+Owner's Equity

Anything of value that is OWNED by the business is:

• Assets
• Liabilities
• Owner's Equity
• Revenue

Money OWED by the business is:

• Liabilities
• Assets
• Owner's Equity
• Revenue

Which of the following is NOT one of the three financial statements we have went over?

• Balance Sheet
• Income Statement
• Statement of Change in Owner's Equity
• Owner's Equity

What are the three components that are included on a Balance Sheet?

• Assets, Liabilities, Owner's Equity
• Income, Assets, Expenses
• Revenue, Expenses, Net Income/Loss
• Loss, Owner's Equity, Assets

Someone who assembles, analyzes, and checks the accuracy of financial information

• Bookkeeper

• Accountant

• Tax Examiner

• Securities Salesperson

Someone who manages the financial records or "keeps the books" of a company or client

• Financial Examiner

• Loan Officer

• Tax Preparer

• Bookkeeper

The amount in an account

• account title
• revenue
• account balance
• accounting records