Intro to Finance

ATO stands for...

• Australian Taxation Office

• Australian Tax Organisation

• Agricultural Tax Office

• Australian Tertiary Office

An income statement shows...

• Statement of the relationship between assets, liabilities and owners’ equity

• Statement of performance of the businesses, calculated using revenues and expenses to find if the organisation has made a profit or loss

GST stands for...

• Greater Service Tax

• Goods and Sales Tax

• Goods and Services Tax

• Greater Service Tax

Source documents are stored for how many years?

• 2

• 3

• 4

• 5

The difference between a cash receipt and an invoice is...

• A invoice is to indicate that a sale has been received whereas,  a receipt outlines that a sale has been authorised

• A receipt is to indicate that a sale has been received, whereas an invoice outlines that a sale has been authorised

Record keeping is important in business because...

• It allows you to make sound business decisions

• Allows you to keep track of money

• Allows you to avoid penalties

• All of the above

You need a separate bank account if...

• You operate a partnership, company or trust

• You operate a sole trader business

Which of the following is GST-free?

• Most basic food

• Some education courses

• Some medicines

• All of the above

A balance sheet shows the relationship between assets, liabilities and owners' equity

• True

• False