Question 1

Correct
Mark 1.00 out of 1.00
Flag question

Question text
A written report of the financial condition of a firm.

a.
Statement of cash flow
b.
Balance Sheet
c.
Financial Statement
d.
Income Statement
Feedback
Your answer is correct.

Question 2
Correct
Mark 1.00 out of 1.00
Flag question

Question text
If your company sells products or services and doesn’t collect payment immediately you
have “receivables” and you must track.

a.
Inventory
b.
Accounts Payable
c.
Loans Payable
d.
Accounts Receivable
Feedback
Your answer is correct.

Question 3
Correct
Mark 1.00 out of 1.00
Flag question
 Question text
The activity or occupation of keeping records of the financial affairs of a business.

a.
Analyzing
b.
Recording
c.
Bookkeeping
d.
Planning
Feedback
Your answer is correct.

Question 4
Correct
Mark 1.00 out of 1.00
Flag question

Question text
It is calculated as sales less the cost of goods sold.

a.
Sales
b.
Gross profit
c.
Operating expenses
d.
Cost of goods sold
Feedback
Your answer is correct.

Question 5
Correct
Mark 1.00 out of 1.00
Flag question

Question text
A chart that breaks down how much your business expects to sell in various categories by
month (for the next year) and by year (for the following two to four years).

a.
Balance Sheet
b.
Cash Flow Statement/Cash Budget
c.
Income Statement/Profit and Loss Statement
d.
Sales Forecast
Feedback
Your answer is correct.

Question 6
Correct
Mark 1.00 out of 1.00
Flag question

Question text
__________ is listed with operating expenses if the cost is associated with fixed assets used for
selling, general and administrative purposes.

a.
Operating expenses
b.
Gross profit
c.
Depreciation
d.
Sales
Feedback
Your answer is correct.

Question 7
Correct
Mark 1.00 out of 1.00
Flag question

Question text
_________ results when a company purchases a fixed asset and expenses it over the entire
period of its planned use, not just in the year purchased.

a.
Operating expenses
b.
Gross profit
c.
Sales
d.
Depreciation
Feedback
Your answer is correct.

Question 8
Correct
Mark 1.00 out of 1.00
Flag question

Question text
It is usually included in operating expenses and/or cost of goods sold, but it is worthy of
special mention due to its unusual nature.

a.
Operating expenses
b.
Depreciation
c.
Sales
d.
Gross profit
Feedback
Your answer is correct.

Question 9
Correct
Mark 1.00 out of 1.00
Flag question

Question text
It also called the profit and loss statement or P&L, summarizes your company's revenue and
expenses.

a.
Cash Flow Statement/Cash Budget
b.
Balance Sheet
c.
Income Statement/Profit and Loss Statement
Feedback
Your answer is correct.

Question 10
Correct
Mark 1.00 out of 1.00
Flag question

Question text
These costs include materials used, direct labor, plant manager salaries, freight and other
costs associated with operating a plant (for example, utilities, equipment repairs, etc.)

a.
Sales
b.
Gross profit
c.
Cost of goods sold
d.
Operating expenses
Feedback
Your answer is correct.

Question 11
Correct
Mark 1.00 out of 1.00
Flag question

Question text
It measures all your revenue sources vs. business expenses for a given time period.

a.
Income Statement
b.
Balance Sheet
c.
Financial Statement
d.
Statement of cash flow
Feedback
Your answer is correct.
Question 12
Correct
Mark 1.00 out of 1.00
Flag question

Question text
These are expenses that stay the same when your sales increase such as rent, insurance,
licensee fees, utilities etc.

a.
Fixed expenses
b.
Variable expenses
c.
Cost of goods sold
Feedback
Your answer is correct.

Question 13
Correct
Mark 1.00 out of 1.00
Flag question

Question text
It is computed by subtracting the operating expenses from the gross profit.

a.
Operating profit
b.
Other income and expenses
c.
Income taxes
d.
Net profit before taxes
Feedback
Your answer is correct.

Question 14
Correct
Mark 1.00 out of 1.00
Flag question

Question text
It is computed by subtracting taxes paid from net income before taxes.
a.
Net profit after taxes
b.
Operating profit
c.
Net profit before taxes
d.
Other income and expenses
Feedback
Your answer is correct.

Question 15
Correct
Mark 1.00 out of 1.00
Flag question

Question text
It provides a snapshot of the business's assets, liabilities and owner's equity for a given time.

a.
Statement of cash flow
b.
Income Statement
c.
Financial Statement
d.
Balance Sheet
Feedback
Your answer is correct.

Question 16
Incorrect
Mark 0.00 out of 1.00
Flag question

Question text
A net figure is computed by subtracting other expenses from other income.

a.
Other income and expenses
b.
Operating profit
c.
Net profit before taxes
d.
Income taxes
Feedback
Your answer is incorrect.

Question 17
Correct
Mark 1.00 out of 1.00
Flag question

Question text
These obligations of the business are not due for at least one year.

a.
Long-term liabilities
b.
Current liabilities
c.
Owner's equity
Feedback
Your answer is correct.

Question 18
Correct
Mark 1.00 out of 1.00
Flag question

Question text
These obligations of the business are due within one year.

a.
Current liabilities
b.
Long-term liabilities
c.
Owner's equity
Feedback
Your answer is correct.

Question 19
Correct
Mark 1.00 out of 1.00
Flag question

Question text
A document (hard copy or digital) that records a business dealing.

a.
Business Plan
b.
Business Record
c.
Marketing Plan
d.
Financial Statement
Feedback
Your answer is correct.

Question 20
Correct
Mark 1.00 out of 1.00
Flag question

Question text
The _________ shows your company's assets and liabilities

a.
Cash Flow Statement/Cash Budget
b.
Balance Sheet
c.
Income Statement/Profit and Loss Statement
Feedback
Your answer is correct.

Question 21
Correct
Mark 1.00 out of 1.00
Flag question

Question text
Products you have in stock to sell are like money sitting on a shelf and must be carefully
accounted for and tracked.

a.
Accounts Receivable29
b.
Loans Payable
c.
Inventory
d.
Accounts Payable
Feedback
Your answer is correct.

Question 22
Correct
Mark 1.00 out of 1.00
Flag question

Question text
This is listed with cost of goods sold if the expense associated with the fixed asset is used in
the direct production of inventory.

a.
Sales
b.
Depreciation
c.
Gross profit
d.
Operating expenses
Feedback
Your answer is correct.

Question 23
Correct
Mark 1.00 out of 1.00
Flag question

Question text
These expenses go up or down based on the sales you make such as advertising, delivery
charges and electricity if you are manufacturing.

a.
Cost of goods sold
b.
Fixed expenses
c.
Variable expenses
Feedback
Your answer is correct.

Question 24
Correct
Mark 1.00 out of 1.00
Flag question

Question text
These are expenses relating directly to sales such as buying stock or components, freight
costs if goods are shipped to your business or wages if a staff member works directly on
producing an item for sale.

a.
Variable expenses
b.
Fixed expenses
c.
Cost of goods sold
Feedback
Your answer is correct.

Question 25
Correct
Mark 1.00 out of 1.00
Flag question

Question text
The following are the example of variable cost except.

a.
Materials used
b.
Direct labor
c.
Packaging Materials used
d.
Rent
Feedback
Your answer is correct.

Question 26
Correct
Mark 1.00 out of 1.00
Flag question

Question text
This figure represents the total amount invested by the stockholders plus the accumulated
profit of the business.

a.
Owner's equity
b.
Long-term liabilities
c.
Current liabilities
Feedback
Your answer is correct.

Question 27
Correct
Mark 1.00 out of 1.00
Flag question

Question text
A written description of your business' future.

a.
Marketing Plan
b.
Advertising Plan
c.
Business Plan
d.
Distribution Plan
Feedback
Your answer is correct.

Question 28
Correct
Mark 1.00 out of 1.00
Flag question
 Question text
These selling, general and administrative expenses are necessary to run the business

a.
Operating expenses
b.
Gross profit
c.
Depreciation
d.
Sales
Feedback
Your answer is correct.

Question 29
Incorrect
Mark 0.00 out of 1.00
Flag question

Question text
If you’ve borrowed money to buy equipment, vehicles, furniture or other items for your
business, this is the account that tracks what’s owed and what’s due.

a.
Inventory
b.
Accounts Receivable
c.
Loans Payable
d.
Accounts Payable
Feedback
Your answer is incorrect.

Question 30
Incorrect
Mark 0.00 out of 1.00
Flag question

Question text
The following are the example of variable cost except.

a.
Land
b.
Building
c.
Plant
d.
Freight
Feedback
Your answer is incorrect.

Question 31
Correct
Mark 1.00 out of 1.00
Flag question

Question text
This account has a nice ring to it. Basically, it tracks the amount each owner puts into the
business.

a.
Payroll Expenses
b.
Owners’ Equity
c.
Retained Earnings
d.
Purchases
Feedback
Your answer is correct.

Question 32
Correct
Mark 1.00 out of 1.00
Flag question

Question text
These expenses go up or down based on the sales you make such as advertising, delivery
charges and electricity if you are manufacturing.

a.
Cost of goods sold
b.
Fixed expenses
c.
Variable expenses
Feedback
Your answer is correct.

Question 33
Correct
Mark 1.00 out of 1.00
Flag question

Question text
(Selling Price - Cost to Produce) / Cost to Produce = _________.

a.
Markup Percentage
b.
Revenue
c.
Sales
d.
Profit
Feedback
Your answer is correct.

Question 34
Correct
Mark 1.00 out of 1.00
Flag question

Question text
It is important in a business for it is the only way to inform the entrepreneur how the
business is doing.

a.
Record Keeping
b.
Business Record
c.
Business Plan
d.
Financial Statement
 Feedback
Your answer is correct.

Question 35
Correct
Mark 1.00 out of 1.00
Flag question

Question text
The number is computed by adding other income (or subtracting if other expenses exceed
other income) to the operating profit.

a.
Operating profit
b.
Net profit before taxes
c.
Other income and expenses
d.
Income taxes
Feedback
Your answer is correct.

Question 36
Correct
Mark 1.00 out of 1.00
Flag question

Question text
Operating activities are the daily internal activities of a business that either require cash or
generate it.

a.
Net cash flow from investing activities
b.
Net change in cash and marketable securities
c.
Net cash flow from financing activities
d.
Net cash flow from operating activities
Feedback
Your answer is correct.
Question 37
Correct
Mark 1.00 out of 1.00
Flag question

Question text
These are the tangible assets of a business that will not be converted to cash within a year
during the normal course of operation.

a.
Current assets
b.
Fixed assets
c.
Other assets
Feedback
Your answer is correct.

Question 38
Correct
Mark 1.00 out of 1.00
Flag question

Question text
The __________________ shows the sums you expect to be coming into and going out of your
business in a given time frame.

a.
Income Statement/Profit and Loss Statement
b.
Balance Sheet
c.
Cash Flow Statement/Cash Budget
Feedback
Your answer is correct.

Question 39
Incorrect
Mark 0.00 out of 1.00
Flag question

Question text
This is where you track any raw materials or finished goods that you buy for your business.

a.
Inventory
b.
Payroll Expenses
c.
Sales
d.
Purchase
Feedback
Your answer is incorrect.

Question 40
Correct
Mark 1.00 out of 1.00
Flag question

Question text
It is where you track any raw materials or finished goods that you buy for your business.

a.
Payroll Expenses
b.
Purchases
c.
Retained Earnings
d.
Owners’ Equity
Feedback
Your answer is correct.

Question 41
Correct
Mark 1.00 out of 1.00
Flag question

Question text
It is designed to convert the accrual basis of accounting used to prepare the income
statement and balance sheet back to a cash basis.

a.
Income Statement
b.
Statement of cash flow
c.
Balance Sheet
d.
Financial Statement
Feedback
Your answer is correct.

Question 42
Correct
Mark 1.00 out of 1.00
Flag question

Question text
The results of the first three calculations are used to determine the total change in cash and
marketable securities caused by fluctuations in operating, investing and financing cash flow.

a.
Net change in cash and marketable securities
b.
Net cash flow from operating activities
c.
Net cash flow from investing activities
d.
Net cash flow from financing activities
Feedback
Your answer is correct.

Question 43
Correct
Mark 1.00 out of 1.00
Flag question

Question text
This is the gross revenue generated from the sale of clothing less returns (cancellations) and
allowances (reduction in price for discounts taken by customers).

a.
Gross profit
b.
Cost of goods sold
c.
Sales
d.
Operating expenses
Feedback
Your answer is correct.

Question 44
Incorrect
Mark 0.00 out of 1.00
Flag question

Question text
The Retained Earnings account tracks any of your company’s profits that are reinvested in
the business and are not paid out to the owners

a.
Retained Earnings
b.
Payroll Expenses
c.
Owners’ Equity
d.
Purchases
Feedback
Your answer is incorrect.

Question 45
Correct
Mark 1.00 out of 1.00
Flag question

Question text
The _______ account is where you track all incoming revenue from what you sell

a.
Sales
b.
Purchase
c.
Inventory
d.
Payroll Expenses
Feedback
Your answer is correct.

Question 46
Correct
Mark 1.00 out of 1.00
Flag question

Question text
Gross Profit / _________ = Gross Profit Margin

a.
Cost
b.
Net Income Before Tax
c.
Expenses
d.
Sales
Feedback
Your answer is correct.

Question 47
Correct
Mark 1.00 out of 1.00
Flag question

Question text
The costs that generally are more static in nature

a.
Fix Cost
b.
Variable Cost
c.
Expenses
Feedback
Your answer is correct.

Question 48
Correct
Mark 1.00 out of 1.00
Flag question

Question text
These are the assets in a business that can be converted to cash in one year or less.

a.
Current assets
b.
Other assets
c.
Fixed assets
Feedback
Your answer is correct.

Question 49
Correct
Mark 1.00 out of 1.00
Flag question

Question text
Some of the most common ___________ include cash value of life insurance, long-term
investment property and compensation due from employees.

a.
Other assets
b.
Current assets
c.
Fixed assets
Feedback
Your answer is correct.

Question 50
Correct
Mark 1.00 out of 1.00
Flag question

Question text
This is the biggest cost of all for many businesses.

a.
Retained Earnings
b.
Purchases
c.
Payroll Expenses
d.
Owners’ Equity
Feedback
Your answer is correct.