Accounting Review

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

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

Expenses that vary from month to month are called:

• equity expenses

• fixed expenses

• variable expenses

• revenue expenses

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

• Budget

• Income Statement

• Balance Sheet

• Statement of Cash Flows

On a budget, which of the following categories would probably stay the same month to month?

• mortgage

• clothing

• credit card payment

• groceries

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

Which of the following assets is guaranteed to LOSE value over time (depreciation)?

• house

• cash

• stocks

• car

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

• assets

• liabilities

• equity

• liquidity

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

Expenses that stay the same from month to month are called:

• flexible expenses

• fixed expenses

• revenue expenses

• variable expenses