NEW
Font size
WorksheetsANS2FA- 2.01 Quiz
Total questions: 10
Worksheet time: 5mins
What are current assets?
Items with a useful life of more than one year
Items quickly convertible to cash
Debts owed
Constant expenses
What is the formula for calculating net worth or owner's equity?
Total assets minus total liabilities
Total assets multiplied by total liabilities
Total liabilities divided by net worth
Total assets plus total liabilities
What is the purpose of a balance sheet?
To access individual accounts or make cash withdrawals
To provide tax advantages for long-term savings
To allocate future personal income towards savings
To show the financial status of a business
What are fixed costs?
Expenses that changes in proportion to how much is produced
Items that can quickly be converted to cash
Expenses that are constant
Debts owed
What is the function of a checking account?
Allows depositing and withdrawing funds
A savings account with tax advantages
Benefits in addition to normal wages
A mandated contribution to government
What is credit?
Money made available based on the borrower's ability to repay
Benefits to employees besides wages or salaries
A service by financial institutions
An itemized list of assets
What is an Individual Retirement Account (IRA)?
A savings account with tax advantages for long-term saving and investing
A method of extending credit
A financial plan for allocating future income towards savings
A written record of financial activities, position, and performance
What are non-wage compensations?
Items that have a useful life of more than one year
Debts owed
Expenses that are constant
Benefits provided to employees in addition to their normal wages or salaries
What are taxes?
Debts owed
Expenses that change with production
Quickly convertible to cash items
A mandated contribution to government
What is the purpose of a personal budget?
To convey the financial activities, position, and performance of a person or company
To create a financial plan that allocates future personal income towards savings, expenses, and taxes
To provide tax advantages for long-term savings
To ensure accuracy and for tax, financing, or investing purposes
