CTE TSA Business Quiz

What are assets in a business?

• Resources owned or controlled by a business that have economic value and can be used to generate future benefits.

• Income generated by a business that have economic value.

• Expenses incurred by a business that have economic value.

• Liabilities of a business that have economic value.

What are liabilities in a business?

• Revenue or income

• Expenses or costs

• Assets or investments

• Financial obligations or debts

What is equity in a business?

• A type of debt in a business

• The amount of money a business owes to its creditors

• The total revenue generated by a business

• Ownership interest or stake in a company

What is the purpose of an income statement?

• To track the company's stock prices and market value.

• To calculate the company's total assets and liabilities.

• To provide a summary of a company's revenues, expenses, and net income over a specific period of time.

• To determine the company's customer satisfaction and loyalty.

What is the purpose of a balance sheet?

• To analyze a company's marketing strategies

• To provide a snapshot of a company's financial position

• To track a company's sales and revenue

• To determine a company's employee satisfaction

What is the purpose of a cash flow statement?

• To provide information about cash inflows and outflows

• To calculate the net worth of a company

• To determine the market value of a company

• To track the movement of physical cash

What is the accounting equation?

• Assets = Liabilities + Equity

• Assets = Liabilities - Equity

• Assets - Liabilities = Equity

• Assets + Liabilities = Equity

What is profit in a business?

• The total revenue generated by a business.

• Loss incurred from revenue exceeding expenses.

• Financial gain from revenue exceeding expenses.

• The amount of money invested in a business.

What is revenue (sales) in a business?

• Total amount of money paid to employees

• Total amount of money earned from investments

• Total amount of money spent on goods or services

• Total amount of money generated from the sale of goods or services

What is the cost of goods sold?

• The cost of goods sold is the cost of goods that are still in inventory.

• The cost of goods sold is the total cost of all goods produced by a company.

• The cost of goods sold is the cost of goods purchased by a company.

• The cost of goods sold is the direct cost incurred in producing goods or services that have been sold by a company.