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Business
University
Chapter 10 and 11: Accounting and Finance
15 questions
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- 1. Multiple Choice
Accounting is ....
the process of recording financial transactions pertaining to a business
art and science of managing money
a social science that deals with the production, distribution, and consumption of goods and services
- 2. Multiple Choice
An Asset is...
An asset is a resource currently owned and controlled by a business as a result of a past transaction
An asset is a resource owned by a business as a result of a past transaction
An asset is something that costs money
- 3. Multiple Choice
Which of the following is an example of an asset?
Vehicle
Electricity
Mortgage
- 4. Multiple Choice
Which of the following is an example of a liability?
Loan
Building
Sales
Accounts receivable
- 5. Multiple Choice
Which of the following is an example of Income
Sales
Mortgage
Equipment
- 6. Multiple Choice
Double entry in accounting means there must be________ entries for every transaction?
two
Three
six
one
- 7. Multiple Choice
Summary of assets and liabilities
Profit and loss account
Balance Sheet
Trading acccont
Income and expenditure account
- 8. Multiple Choice
Accounting is referred to as the "language of ___________________."
Profit
Life
Accounting
Business
- 9. Multiple Choice
Goodwill is a
Tangible assets
Liquid assets
Intangible assets
Intangible Liabilities
- 10. Multiple Choice
Managerial accounting is designed for use by:
Internal users
Stockbrokers
External users
Clients
- 11. Multiple Choice
What is the accounting equation
Revenue - Expenses = Profit
Capital + Assets = Liabilities
Capital + Liabilities = Assets
Capital - Liabilities = Assets
- 12. Multiple Choice
The formula for calculating the break-even number of units is:
- 13. Multiple Choice
The time it takes to double an investment can be estimated by using which of the following?
book value
the Rule of 72
blue-chips
- 14. Multiple Choice
What is Finance?
Finance refers to art and science of managing money
Finance is the process of recording financial transactions pertaining to a business
Finance is process to identifying customer needs and wants
- 15. Multiple Choice
Fara earns an interest rate of 2.2% on a $9,000 savings account. Let’s calculate the future value of this amount if Fara keeps it for 11 years:
Formula: FV= PV(1+i)7
$11,434.11
$10,434.11
$9,434.11
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