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- 1. Multiple Choice
What does liquidity mean?
anything you own that is worth money
what you are worth
how quickly an asset can be turned into cash
debts that a company has
- 2. Multiple Choice
A balance sheet measures assets and liabilities. What does an income statement measure?
assets and revenue
liabilities and expenses
sales and equity
revenue and expenses
- 3. Multiple Choice
Expenses that vary from month to month are called:
equity expenses
fixed expenses
variable expenses
revenue expenses
- 4. Multiple Choice
Which financial statement help you plan your expenses BEFORE you have spent any money?
Budget
Income Statement
Balance Sheet
Statement of Cash Flows
- 5. Multiple Choice
On a budget, which of the following categories would probably stay the same month to month?
mortgage
clothing
credit card payment
groceries
- 6. Multiple Choice
If I buy a house for $600,000 and put $200,000 as a down payment in cash, the remaining $400,000 is my:
asset
equity
liability
revenue
- 7. Multiple Choice
Which of the following assets is guaranteed to LOSE value over time (depreciation)?
house
cash
stocks
car
- 8. Multiple Choice
Obligations that a company has (debt) is known as:
assets
liabilities
equity
liquidity
- 9. Multiple Choice
If I take out a loan for $2000 to buy a new computer, on my balance sheet I would change the
asset column only
asset and liability column
liability and equity column
asset and equity column
- 10. Multiple Choice
Expenses that stay the same from month to month are called:
flexible expenses
fixed expenses
revenue expenses
variable expenses
- 11. Multiple Choice
What is the accounting equation?
Assets = Liabilities + Equity
Assets = Expenses + Equity
Assets = Liabilities - Equity
Assets = Liabilities x Equity
- 12. Multiple Choice
For which financial statement does the following rule apply: the two sides of the statement need to be equal
Income Statement
Balance Sheet
Statement of Cash Flows
Statement of Stockholder's Equity
- 13. Multiple Choice
A house is an example of:
an asset
a liability
equity
liquidity
- 14. Multiple Choice
On a budget, which of the following categories may change from month to month?
mortgage
house payment
entertainment
insurance
- 15. Multiple Choice
After you deduct all your expenses, the money left over is your:
net
gross
taxes
securities
- 16. Multiple Choice
Accounts Payable is an example of
an asset
a liability
equity
liquidity
- 17. Multiple Choice
Things that a business own that are worth value are called:
assets
liabilities
equity
liquidity
- 18. Multiple Choice
What is left over after all debts are paid is called:
assets
liabilities
equity
liquidity
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