Unit 5 - Finance and Accounting Assessment

With this economic system, the ________________ is the driver that leads to risk-taking and the creation of economic value through innovation.

• profit motive
• gross profit
• capital
• inventory

What is used to report revenues, expenses and income for a specific time period?

• Profit and Loss Statement
• Cost of Goods Sold
• Gross Profit
• Proforma

When a shoe manufacturer purchases fabric, rubber, and other raw materials, then adds all the direct labor and manufacturing costs used to produce those shoes, that is:

• Gross Profit
• Profit and Loss Statement
• Total Operating Expenses
• Cost of Goods Sold

The “Personnel” expense category includes employee benefits, workers’ compensation, and what else? Select TWO options.

• association dues
• wages
• facility maintenance
• payroll taxes
• patents

Money spent to pay for borrowed money is:

• Interest Expense
• Gross Profit
• Net Income
• Operating Income

An estimate or projection of future revenues, expenses, net income, and capital needed to fund the company’s operations is a:

• balance sheet
• proforma
• net income
• profit

Revenue is the total sales for a company over a certain period of time, and is also often referred to as the _______________.

• bottom line
• gross profit
• operating income
• top line

The process of recording, maintaining, and reporting an organization’s financial transactions and records is:

• accounting
• finance
• management
• planning

What focuses on the management of the assets, liabilities, equity, and cash flow of an organization, financial analysis like ROI and ROE, and financial planning of future growth?

• accounting
• finance
• maintenance
• reporting

An organization’s main accounting record that stores transactions and financial data, organized by accounts is the:

• Shareholders’ Equity
• Assets
• General Ledger
• Liabilities