FABM2 QUIZ 1

How often is it recommended to create a Statement of Financial Position?

• once per year

• twice per year

• every quarter

• every other month

The market value of your home, your furniture, car, clothing are all examples of...

• monetary assets

• tangible assets

• liabilities

• Net worth

If you owe on your car, home, credit card or loan, they are examples of...

• assets

• net worth

• liabilities

• investment

This is how net worth is calculated...

• This is how net worth is calculated...

• This is how net worth is calculated...

• This is how net worth is calculated...

All of the following statements regarding the purpose of the Statement of Financial Position (Balance Sheet) are correct except for?

• Shows assets, liabilities and owner's equity

• It is prepared at a point in time

• It can assist users, such as bank managers, with decisions

• Shows revenue, expenses and profit

All of the following are revenues, except for?

• Accounts receivable

• Dividends received

• Rent Revenue

• Commission Revenue

The main source of revenue for a trading business

• Sales

• Sales

• Fees received

• Capital

A possible main source of revenue for a service business

• Fees received

• Sales

• Interest received

• Capital

You want to know how much cash came out from the business to the suppliers. What is the financial statement that you need to check?

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Statement of Owner's Equity

is a business activity of buying and selling of goods.

• Service

• Merchandising

• Manufacturing