Accounting Quiz

Haya is preparing the P & L report, which of the following would be considered an operating expense?

• Cost of goods sold

• Interest on loans

• Sales revenue

• Rent for office space

Reaab decides to review her company's financials. What does a balance sheet reveal?

• Its total revenue

• What a business owns and owes

• How much it paid in rent

• How much gross profit a business made

Samer is curious about the timeframe of financial reports. How long does a balance sheet cover?

• One year

• One moment in time

• One quarter

• One tax year

Wasim is organizing his company’s assets. Identify the liability!

• Machinery

• Money owed to other businesses (creditors)

• Stock

• Cash in bank

Feras is studying for his accounting exam. True or False: Current liabilities are long-term.

• True

• False

Abdulsalam and Muhanned are evaluating his inventory. Spot the asset!

• Reduced rent

• A satisfied customer

• A loan to buy a van

• Any stock (Inventory) that you have

Mennah is learning about asset liquidity. Can fixed assets be converted to cash quickly?

• False

• True

Elham is applying for a bank loan because she is selected for EHL program. A bank loan is typically classified as:

• a fixed asset

• a current asset

• a current liability

• long-term liability

Maysa just finished a big slice of cheesecake and is feeling like a math genius. Is this the Accounting Equation? Assets = Capital - Liabilities, or did she mix up her dessert recipe with her accounting notes?

• True

• False

Mohammed wants to understand cash flow better. What is Working Capital?

• None of the above

• Current Assets - Current Liabilities

• Assets - Liabilities

• Fixed Assets - Long-term Liabilities