Finance and Accounting Review

Which of the following are the two most common types of bank accounts?

• Savings

• Piggy banks

• Chequings

• Mortgage loan

What is an expense that is constant no matter the quantity of goods or services provided?

• Variable

• Credit

• Bills

• Fixed

What is the formula for simple interest?

• I = Credit - Savings / Rate

• I = Principal x Rate x Time

• I = Principal x Rate / Time

• I = Savings - Expenses x Amount

What can you open with a bank that allows to borrow in increments, repay, and borrow again?

Hint: you pay interest while it is open for borrowing.

• A line of credit

• A home insurance plan

• A loan

• A RESP (Registered Education Savings Plan)

Calculate simple interest on $2000 at a rate of 5% over 8 years

• Lose 20%

• I = $1600

• I = $800

• I = 24%

Which of the following are the three most common sources of income?

• Dividends

• Running a lemonade stand

• Wages

• Waitressing

• Interest

Income - Expenses = Savings is the equation of a _________?

• Rent bill

• Savings plan

• Tax bill

• Budget

What is an expense that changes with the level of production output?

• Electricity bill

• Entertainment

• Fixed

• Variable

• House insurance

What is an amount of money borrowed or loaned called?

• A Loan

• Dollars

• A liability

• Principal

• Capacity

What refers to the applicant's ability to repay a loan?

• Capacity

• Capital

• Interest

• Character