Accounting and Finance Basics

Question 1

What are Assets?

• A. Company debts

• B. Resources owned by a business

• C. Monthly expenses

• D. Employee salaries

Question 2

Which of the following is a Liability?

• A. Cash in the bank

• B. Accounts receivable

• C. Bank loan

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  D. Office furniture

Question 3

Which of the following is considered an Asset?

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  D. Accrued expenses

• A. Accounts payable

• B. Inventory

• C. Outstanding loans

Question 4

What is the primary purpose of a Balance Sheet?

• D. To detail the company's expenses

• A. To show the company's cash flow

• C. To provide a snapshot of the company's financial position

• B. To summarize the company's revenues

Question 5

Which of the following represents an Equity?

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  D. Short-term debt

• C. Bank overdraft

• B. Accounts payable

• A. Retained earnings

Question 6

What is the definition of Liabilities?

• C. Income generated from sales

• B. Obligations or debts owed by a company

• A. Resources owned by a business

• D. Investments made by shareholders

Question 7

Which of the following is an example of a Current Asset?

• D. Long-term investments

• C. Cash

• B. Equipment

• A. Land

Question 8

What does Equity represent in a company's financial statements?

• B. Total revenue generated

• D. Total cash flow

• A. Total assets minus total liabilities

• C. Total expenses incurred

WHICH OF THESE IS A LIABILITY?

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Look at the image. Which of the following represents a company asset?

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