Finance Test

This term is used to describe a system to record, classify, summarize, and interpret the financial data of a business?

• Transaction

• Accounting

• Financial Data

True or False: An example of a transaction is a purchase?

• True

• False

Property or any item of value owned by a business is known as an?

• Owners Equity

• Liability

• Asset

Which is the correct formula for the accounting equation?

• Liabilities=Owners Equity + Assets

• Owners Equity=Assets + Liabilities

• Assets=Liabilities + Owners Equity

True or False: Owners equity is any amount a business owes?

• True

• False

A twelve month period is called a ______ in accounting?

• Year

• Fiscal Year

• Accounting Period

True or False: The two main kinds of financial statements are income statement and balance sheet?

• True

• False

This type of financial document reports a net income or net loss over an accounting period?

• Balance Sheet

• Income Statement