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WorksheetsFinancial Literacy - Accounting Concepts Quiz
Total questions: 19
Worksheet time: 14mins
What is a Sole Trader?
A government-owned business
A type of corporation
A person who owns and runs the business alone
A business owned by multiple people
What does 'Debit' mean in accounting?
Money going out of the business
A business expense
A type of loan
Money coming in or an asset increasing
What is 'Credit' in financial terms?
Money coming into the business
Money going out or a liability increasing
A type of income
A form of investment
What is considered 'Capital'?
The total income of the business
The profits made by the business
The owner's money invested in the business
The expenses incurred by the business
What does 'Owner's Equity' represent?
The income generated by the business
The total liabilities of the business
The owner's share after debts are paid
The total assets of the business
What is 'Income'?
The owner's investment in the business
The total liabilities of the business
Money the business earns from sales
Money spent on business operations
What are 'Expenses'?
Money received from customers
Costs to run the business
The owner's profits
The total assets owned by the business
What is 'Profit'?
The total income of the business
What remains after expenses are subtracted from income
The total liabilities of the business
The owner's equity in the business
What are 'Losses'?
When income exceeds expenses
When expenses are more than income
The total assets of the business
The owner's investment in the business
What are 'Transactions'?
Any money-related activity
Only sales made by the business
Only expenses incurred
The owner's equity
What does 'Liability' refer to?
The total income of the business
The owner's equity
Money the business owes
Money the business owns
What are 'Assets'?
The total expenses of the business
The owner's profits
Things the business owns
Money the business owes
What is the purpose of 'Banking'?
To manage liabilities
To calculate profits
To track expenses only
To keep money safe and manage payments
What are 'Cash Receipts'?
The owner's equity
Money the business pays out
Money the business receives
The total income of the business
What are 'Cash Payments'?
The owner's profits
The total assets of the business
Money the business pays out
Money the business receives
What are 'Subsidiary Journals'?
The owner's financial statements
The total income reports
Special books to group similar transactions
Books to record all transactions
What is the 'Accounting Equation'?
ASSETS = EXPENSES + LIABILITIES
CASH = RECEIPTS - PAYMENTS
INCOME = EXPENSES + PROFIT
ASSETS = LIABILITIES + OWNER'S EQUITY
If a bakery owns $10,000 in assets and owes $4,000 in loans, what is the owner's equity?
$6,000
$14,000
$4,000
$10,000
What is an example of an expense for a bakery?
Buying flour
Selling cakes
Receiving cash from customers
Owner's investment
