Accounting Review

Front

What does liquidity mean?

Back

how quickly an asset can be turned into cash

Front

A balance sheet measures assets and liabilities. What does an income statement measure?

Back

revenue and expenses

Front

Expenses that vary from month to month are called:

Back

variable expenses

Front

Which financial statement helps you plan your expenses BEFORE you have spent any money?

Back

Budget

Front

On a budget, which of the following categories would probably stay the same month to month? mortgage, clothing, credit card payment, groceries

Back

mortgage

Front

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

Back

liability

Front

Which of the following assets is guaranteed to LOSE value over time (depreciation)?
Options: house, cash, stocks, car

Back

car

Front

Obligations that a company has (debt) is known as:

Back

liabilities

Front

If I take out a loan for $2000 to buy a new computer, on my balance sheet I would change the

Back

asset and liability column

Front

Expenses that stay the same from month to month are called: flexible expenses, fixed expenses, revenue expenses, variable expenses

Back

fixed expenses