Test on Basic Concept

What is the accounting equation?

• Assets = Liabilities + Equity

• Liabilities = Assets - Equity

• Assets + Liabilities = Equity

• Assets = Equity - Liabilities

Define assets in accounting.

• Assets are expenses incurred by a business during operations.

• Assets are temporary accounts that track revenue.

• Assets are resources owned by a business that have economic value and can provide future benefits.

• Assets are liabilities that decrease a company's value.

What is the purpose of a balance sheet?

• To calculate a company's revenue for the year.

• To summarize a company's cash flow activities.

• To provide a detailed report of daily transactions.

• The purpose of a balance sheet is to show a company's financial position by listing its assets, liabilities, and equity.

What does ROI stand for in finance?

• Return on Income

• Return on Investment

• Revenue on Investment

• Rate of Interest

What is the difference between fixed and variable costs?

• Fixed costs are constant; variable costs change with production levels.

• Variable costs are predictable; fixed costs are unpredictable.

• Fixed costs are always higher than variable costs; variable costs can never be constant.

• Fixed costs vary with production levels; variable costs remain constant.

What is the role of HR in an organization?

• To oversee financial audits and budgeting

• To manage the organization's marketing strategies

• The role of HR in an organization is to manage recruitment, employee relations, training, compliance, and workplace culture.

• To handle customer service and support inquiries

What is a job description?

• A job description is a summary of the company's history.

• A job description is a list of employee benefits.

• A job description is a document outlining the company's mission.

• A job description is a formal document detailing the responsibilities and qualifications for a specific position.

What is market segmentation?

• Market segmentation is the division of a market into distinct groups of buyers.

• Market segmentation is the analysis of market trends over time.

• Market segmentation is the process of increasing market prices.

• Market segmentation refers to the total market size of a product.

What is the 4 P's of marketing?

• People, Process, Performance, Partnership

• Product, Price, Position, Promotion

• Product, Price, Place, Promotion

• Product, Price, Place, People

What is the purpose of a cash flow statement?

• The purpose of a cash flow statement is to provide insight into a company's cash inflows and outflows over a specific period.

• To summarize a company's total assets and liabilities.

• To track the company's stock price changes over time.

• To provide a detailed analysis of market trends and competition.