BUSINESS MATH

What does the accounting equation represent?

• Assets = Liabilities = Owner's + Equity

• Asset = Revenue - Expedes

• Assets = Net Income + Expenses

• Assets = Cash + Investments

What is the primary characteristics of a ability?

• It generates revenue

• It represents future economic benefits

• It is a debt or obligation that must be paid

• It is owned by the company

What term describes assets that can be converted to cash within one year?

• Fixed sets

• Current assets

• Intangible assets

• Long-term assets

Which statement about assets is correct?

• They always decrease in value

• They represent what a company owes

• They must be tangible items

• They have future economic value

Accounts receivable is classified as:

• Current liability

• Long -term asset

• Current asset

• Intangible asset

Which of these is NOT typically considered an asset?

• Prepared rent

• Accounts payable

• Investment securities

• Land

Which asset category would computer software typically fall under?

• Current asset

• Fixed asset

• Intangible asset

• Natural resource

What is the primary purpose of balance sheet?

• Shows company's revenue over time

• Present assets, liabilities, and equity at a specific point

• Tracks cash movements

• Details retained earnings changes

The income statement covers:

• A specific point in tin

• Only revenue transaction

• A period of time

• Only expense transactions

Which financial statement much cash was generated and used during a period?

• Balance sheet

• Income statement

• Statement of cash flows

• Statement of retained earning