10 FBU- Financial Management Quiz 1

Financial Management refers to the planning, monitoring, organising & controlling of the monetary resources of a business.

• True

• False

Which of the following best describes the term asset?

• Amounts a business owes

• Amounts owned to the business by an external party

• Something that a business owns that lasts more than 1 year

• An item of value owned by a business

Which of the following is an example of a liability?

• Cash at bank

• Rent (to pay)

• Bank loan

• Accounts receivable

Revenue is described as money...

• Leaving an business's account

• coming into business

• owed by the business to suppliers

• None of the above

Which of the following is NOT an example of an business expense

• Car loan

• Staff Wages

• Electricity Bill

• Rent paid

Owner's Equity determines

• how many suppliers are owed money

• the outstanding debt a business has

• the total value (worth) of the business

• how much money the business has in the bank

A balance sheet contains which of the following three accounts:

• assets, revenues, liabilities

• assets, liabilities, owner's equity

• revenue, expenses, owner's equity

• expenses, assets, revenue

A ____________________ are items that a business intends to turnover into cash within the next 12 months

A non-current ____________, also known as long-term debt- is debt the business intends to pay off over a longer period than 12 months

Which of the following is an example of a current asset?

• Land

• Machinery

• Building

• Accounts receivable