Element 8 8.1.8_elements_within_a_set_of_financial Account Quiz

What is the term for the resources owned by a business?

• Liabilities

• Assets

• Equity

• Revenue

Which of the following represents the amount owed by a business to its creditors?

• Assets

• Revenue

• Liabilities

• Capital

What is revenue?

• The total expenses of a business

• The total cost of goods sold

• The income generated from normal business operations

• The owner's equity

Which financial statement shows a company's profitability over a specific period?

• Balance Sheet

• Cash Flow Statement

• Income Statement

• Statement of Changes in Equity

What do we call the owner's interest in the business?

• Revenue

• Liabilities

• Equity

• Expenses

What is the definition of gross profit?

• Total revenue minus total liabilities

• Total revenue minus total expenses

• Revenue minus the cost of goods sold

• Equity plus liabilities

Which element represents the residual interest in the assets of the entity after deducting liabilities?

• Equity

• Revenue

• Expenses

• Assets

What are expenses?

• Resources owned by the business

• Obligations owed by the business

• Costs incurred in the process of earning revenue

Which of the following best describes capital?

• Money borrowed from banks

• Owner's investment in the business

• Total revenue generated

• Total expenses incurred

What is net profit?

• Total revenue

• Total assets

• Gross profit minus expenses

• Equity plus liabilities