Finance for Non-Finance - Quiz

What is the main purpose of finance in a business?

• To record accounting transactions

• To manage money and support business decisions

• To prepare tax returns

• To calculate employee salaries

Which statement best describes profit?

• Total money received from customers

• The difference between revenue and expenses

• Cash available in the bank

• Total sales revenue

Which of the following best describes revenue?

• Money earned from selling goods or services

• Money paid to suppliers

• Money borrowed from banks

• Money invested by owners

Which statement about cash flow is correct?

• Cash flow refers only to company profits

• Cash flow refers to the movement of money into and out of a business

• Cash flow only includes payments to suppliers

• Cash flow is the same as revenue

Which financial statement shows the company’s financial position at a specific point in time?

• Profit and Loss Statement

• Cash Flow Statement

• Balance Sheet

• Budget Report

Which financial statement shows business performance over a period of time?

• Balance Sheet

• Profit and Loss Statement

• Cash Flow Statement

• Equity Statement

Which of the following is considered an asset?

• Bank loan

• Office equipment

• Supplier payable

• Utility expense

Which of the following is a liability?

• Inventory

• Equipment

• Bank loan

• Cash

Equity represents:

• Ownership in a company

• A company's total revenue

• The amount of debt a company has

• The company's cash flow

Which of the following best describes owner's equity?

• The total revenue of the company

• The owner’s interest in the business after liabilities are deducted

• The amount of cash in the bank

• The company’s total expenses