Accounting

The accrual method

accounts for revenue when it is

earned

• This is correct

• This is incorrect

Cash basis, revenue and

expenses are recognized when

there is movement of cash

• This is correct

• This is incorrect

What is income?

• A financial metric that measures the total amount of debt a person or company holds.

• A type of investment product that guarantees high returns with no risk.

• refers to the money or earnings received by an individual or entity as a result of their work, investments, or other sources

• A term used to describe the act of borrowing money from a bank or financial institution.

Choose the correct definition of income

• The total expenses incurred by a business in a given period of time.

• The total income generated by a business through its normal operations, usually from the sale of goods or services.

• The amount of money a company spends on purchasing new office equipment.

• term used to describe the profit made by an individual from a part-time hobby.

Is this an example of expenses? Raw materials: The cost of purchasing materials like yarn, fabric, beads, or wood for creating your crafts.

• Yes, it is

• No, it isn't

• Net sales focus on revenue, while gross profit focuses on the difference between revenue and the cost of goods sold.

• This is correct

• This is incorrect

Profit is the total revenue earned by a business, without considering any expenses or costs.

• This is incorrect

• This is correct

Is this an example of profit and loss statement?

• Yes, it is

• No, it isn't