Accounting and Finance

What is the basic accounting equation?

• Assets = Liabilities + Owner's Equity (A = L + OE)

• Liabilities = Capital + Balances

• Capital = Pros + Cons

• What's accounting??

_______ is a financial statement that reports a business's assets, liabilities, and capital on a specific date

• Balance Sheet

• Statement of Cash Flow

• Income Statement

• None of the Above

Which of the following is not a liability

• Inventory

• Car loan

• Mortgage

• Credit card balance

 

Which correctly shows a list of assets and liabilities?

• Assets: mortgage, car loan, land

  Liabilities: retirement savings, cash, credit card loans

• Assets: building, cash in hand, accounts receivable

  Liabilities: loans, accounts payable, mortgage

• Assets: creditors, prepaid expenses, loans

  Liabilities: stocks, accounts receivable, car

• None of the above

Taxes are an asset?

• True

• False

The Accounting Equation must always be in balance? 

• True

• False

A plan for how to manage your money is called a ?

• income

• budget

• expense

• investment

What is income?

• the amount you spent

• the amount you don't save

• money that you earn

• money that spent on expeneses

A system of recording and reporting financial activity is called

• Finance
• Accounting
• Audit

• Budget

Things owned by a company

• liablities
• profit
• assets
• loss