Finance Test

What are the accounting rules used to prepare, present and report financial statements called?

• Standard Business Financial Practices 

• Financial Accounting Standards

• Generally Accepted Accounting Principles

• Financial Account Management Techniques

 __________ are items of value your company owns.

• Profits

• Revenues

• Liabilities

• Assets

__________ are any debts or obligations owed by the company. 

• Profits

• Revenues

• Liabilities

• Assets

A(n) __________ is a summary of a company’s profit or loss during any one given period of time. 

• Income statement 

• Balance sheet

• Subledger

• Fixed asset statement

Which of the following represents the basic accounting equation? 

• Assets = Liabilities + Owner’s Equity

•  Assets = Expenses - Revenue

• Assets = Net income - Revenue

• Assets = Liabilities + Net income 

Which of the following is derived by subtracting the cost of goods sold from the net sales figures? 

• Sales figures

• Costs of goods sold

• Gross profit

• Net income

Which of the following are the costs directly associated with making or acquiring products such as materials purchased from outside suppliers?

• Sales figures

• Costs of goods sold

• Gross profit

•  Net income

Which of the following is the amount of money the business has earned after paying income taxes?

• Sales figures

• Costs of goods sold

•  Gross profit

• Net income

Which of the following is the correct equation for profit? 

• Revenue - Expenses = Profit

• Revenue + Expenses = Profit

• Revenue - Net income = Profit

• Revenue - Sales costs = Profit

Tony deposited $600 in his account. If his bank offers 4% interest compounded monthly, how much will be in his account in 10 years?

• $894.50

• $840.00

• $294.50

• $240.00