Financial Literacy Quiz

The positive difference between your total income and total expenses is known as: Surplus

The negative difference between your total income and total expenses is known as: Deficit

The key step to make sure your future is financially secure is called: Saving

You earn interest on the principal as well as, previously earned interest is called: Compounding

Formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return is called: Rule of 72, Years to double = 72 / Interest rate

An amount of Rs.1000/-, invested at 9 % rate of interest, will double in = 8 years

Gros profit/loss is the difference between revenue and the cost of making a product or providing a service

The income statements show the revenue, expenses, and profits for a specific time period.

Balance Sheet reflects the assets, liabilities, and owner's equity at a point in time.

Payments that are to be received from the customers on a future date as per the agreement is called Receivables.