Basic Accounting Terms Quiz

What is income?

• Money spent on buying goods or services

• Money saved in a bank account

• Money borrowed from a friend

• Money received for providing goods or services

What are expenses?

• Value of assets

• Money earned from selling goods

• Costs incurred in the process of generating revenue

• Savings in a bank account

Provide an example of an expense.

• Revenue

• Rent

• Interest

• Salaries

What are assets?

• Resources owned by a company with economic value

• Expenses incurred by a company

• Liabilities of a company

• Revenue generated by a company

Name two examples of assets.

• Cash and real estate

• Stocks and bonds

• Cars and furniture

• Debt and liabilities

What are liabilities?

• Liabilities are the expenses incurred by a company

• Liabilities are the profits earned by a company

• Liabilities are the assets owned by a company

• Liabilities are the financial obligations or debts that a company owes to others.

Name two examples of liabilities.

• Accounts payable, Loans payable

• Cash and equivalents

• Property, plant, and equipment

• Inventory

What is a balance sheet?

• A recipe for making a cake

• A financial statement that shows a company's financial position at a specific point in time, including its assets, liabilities, and shareholders' equity.

• A list of employees' work schedules

• A map of the world

Explain the purpose of a balance sheet.

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

• To measure customer satisfaction

• To track employee attendance

• To determine the company's marketing strategy