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ANS2FA- 2.01 Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What are current assets?

a)

Items with a useful life of more than one year

b)

Items quickly convertible to cash

c)

Debts owed

d)

Constant expenses

2.

What is the formula for calculating net worth or owner's equity?

a)

Total assets minus total liabilities

b)

Total assets multiplied by total liabilities

c)

Total liabilities divided by net worth

d)

Total assets plus total liabilities

3.

What is the purpose of a balance sheet?

a)

To access individual accounts or make cash withdrawals

b)

To provide tax advantages for long-term savings

c)

To allocate future personal income towards savings

d)

To show the financial status of a business

4.

What are fixed costs?

a)

Expenses that changes in proportion to how much is produced

b)

Items that can quickly be converted to cash

c)

Expenses that are constant

d)

Debts owed

5.

What is the function of a checking account?

a)

Allows depositing and withdrawing funds

b)

A savings account with tax advantages

c)

Benefits in addition to normal wages

d)

A mandated contribution to government

6.

What is credit?

a)

Money made available based on the borrower's ability to repay

b)

Benefits to employees besides wages or salaries

c)

A service by financial institutions

d)

An itemized list of assets

7.

What is an Individual Retirement Account (IRA)?

a)

A savings account with tax advantages for long-term saving and investing

b)

A method of extending credit

c)

A financial plan for allocating future income towards savings

d)

A written record of financial activities, position, and performance

8.

What are non-wage compensations?

a)

Items that have a useful life of more than one year

b)

Debts owed

c)

Expenses that are constant

d)

Benefits provided to employees in addition to their normal wages or salaries

9.

What are taxes?

a)

Debts owed

b)

Expenses that change with production

c)

Quickly convertible to cash items

d)

A mandated contribution to government

10.

What is the purpose of a personal budget?

a)

To convey the financial activities, position, and performance of a person or company

b)

To create a financial plan that allocates future personal income towards savings, expenses, and taxes

c)

To provide tax advantages for long-term savings

d)

To ensure accuracy and for tax, financing, or investing purposes