The Basics of Accounting.

1. What is accounting primarily concerned with?

• D. Customer service
• A. Marketing strategies
• B. Recording important financial information
• C. Manufacturing processes

2. What is accounting often referred to as?

• B. Financial wizardry
• A. Business language
• D. Communication tool
• C. Marketing magic

3. In the story, where does Claudio sell souvenirs?

• C. Italy
• A. Paris
• D. Tokyo
• B. New York

4. How much does each souvenir plate cost Claudio?

• A. 2 euros
• D. 50 euros
• B. 10 euros
• C. 1 euro

5. What price does Claudio sell the souvenir plates to tourists?

• A. 20 euros
• C. 1 euro
• D. 100 euros
• B. 5 euros

6. What is the purpose of an income statement?

• B. Calculating taxes
• A. Tracking the number of employees
• D. Monitoring inventory
• C. Analysing profitability

7. What does P&L stand for in accounting?

• C. Profits and Losses
• B. Planning and Logistics
• A. Profits and Liabilities
• D. People and Leadership

8. What does the balance sheet show?

• A. The company's recipe book
• B. Assets, liabilities, and equity
• D. Employee salaries
• C. Marketing expenses

9. Which of the following is an example of an asset?

• B. Office equipment
• D. Employee salaries
• A. Bank loan
• C. Taxes owed

10. What are liabilities in accounting?

• A. Money earned from sales
• C. Amounts owed to others
• B. Resources owned by the company
• D. Company's profits