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Financial Terms Quiz 2

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is the definition of Accounts Payable?

a)

Money owed to a company by its clients or customers

b)

Money owed by a company to its suppliers

c)

The paying off of debt in regular installments over a period of time

d)

Everything a company owns that has monetary value

2.

What is the definition of Accounts Receivable?

a)

Money owed to a company by its clients or customers

b)

Money owed by a company to its suppliers

c)

The paying off of debt in regular installments over a period of time

d)

Everything a company owns that has monetary value

3.

What is the definition of Amortization?

a)

Money owed to a company by its clients or customers

b)

Money owed by a company to its suppliers

c)

The paying off of debt in regular installments over a period of time

d)

Everything a company owns that has monetary value

4.

What is the definition of Assets?

a)

Money owed to a company by its clients or customers

b)

Money owed by a company to its suppliers

c)

The paying off of debt in regular installments over a period of time

d)

Everything a company owns that has monetary value

5.

What is the definition of Balance Sheet?

a)

Money owed to a company by its clients or customers

b)

Money owed by a company to its suppliers

c)

The paying off of debt in regular installments over a period of time

d)

A financial statement that reports a company's assets, liabilities, and equity at a specific point in time

6.

What is the definition of Break-Even Point?

a)

The point at which total cost and total revenue are equal, meaning the business is neither making a profit nor incurring a loss

b)

Wealth in the form of money or other assets owned by a business

c)

The total amount of money being transferred into and out of a business

d)

The direct costs associated with producing goods

7.

What is the definition of Capital?

a)

Money owed to a company by its clients or customers

b)

Wealth in the form of money or other assets owned by a business

c)

The total amount of money being transferred into and out of a business

d)

The direct costs associated with producing goods

8.

What is the definition of Cash Flow?

a)

Money owed to a company by its clients or customers

b)

Wealth in the form of money or other assets owned by a business

c)

The total amount of money being transferred into and out of a business

d)

The direct costs associated with producing goods

9.

What is the definition of COGS (Cost of Goods Sold)?

a)

Money owed to a company by its clients or customers

b)

Wealth in the form of money or other assets owned by a business

c)

The direct costs associated with producing goods

d)

The reduction in the value of an asset over time

10.

What is the definition of Collateral?

a)

Money owed to a company by its clients or customers

b)

Something pledged as security for a loan

c)

The direct costs associated with producing goods

d)

The reduction in the value of an asset over time

11.

What is the definition of Debt?

a)

Money owed to a company by its clients or customers

b)

Something pledged as security for a loan

c)

Money that a company owes and needs to pay back

d)

The reduction in the value of an asset over time

12.

What is the definition of Depreciation?

a)

Money owed to a company by its clients or customers

b)

Something pledged as security for a loan

c)

Money that a company owes and needs to pay back

d)

The reduction in the value of an asset over time

13.

What is the definition of Equity?

a)

Ownership in a company, typically in the form of shares

b)

Something pledged as security for a loan

c)

Money that a company owes and needs to pay back

d)

The reduction in the value of an asset over time

14.

What is the definition of Gross Profit?

a)

Ownership in a company, typically in the form of shares

b)

The profit a company makes after subtracting the costs associated with producing and selling its products

c)

Money that a company owes and needs to pay back

d)

The reduction in the value of an asset over time

15.

What is the definition of Income Statement (or Profit & Loss Statement)?

a)

Ownership in a company, typically in the form of shares

b)

The profit a company makes after subtracting the costs associated with producing and selling its products

c)

The goods and materials a business holds for the ultimate goal of resale or repair

d)

The reduction in the value of an asset over time