Financial Literacy - Accounting Concepts Quiz

What is a Sole Trader?

• A government-owned business

• A type of corporation

• A person who owns and runs the business alone

• A business owned by multiple people

What does 'Debit' mean in accounting?

• Money going out of the business

• A business expense

• A type of loan

• Money coming in or an asset increasing

What is 'Credit' in financial terms?

• Money coming into the business

• Money going out or a liability increasing

• A type of income

• A form of investment

What is considered 'Capital'?

• The total income of the business

• The profits made by the business

• The owner's money invested in the business

• The expenses incurred by the business

What does 'Owner's Equity' represent?

• The income generated by the business

• The total liabilities of the business

• The owner's share after debts are paid

• The total assets of the business

What is 'Income'?

• The owner's investment in the business

• The total liabilities of the business

• Money the business earns from sales

• Money spent on business operations

What are 'Expenses'?

• Money received from customers

• Costs to run the business

• The owner's profits

• The total assets owned by the business

What is 'Profit'?

• The total income of the business

• What remains after expenses are subtracted from income

• The total liabilities of the business

• The owner's equity in the business

What are 'Losses'?

• When income exceeds expenses

• When expenses are more than income

• The total assets of the business

• The owner's investment in the business

What are 'Transactions'?

• Any money-related activity

• Only sales made by the business

• Only expenses incurred

• The owner's equity