Financial Literacy Quiz

What is an example of a liability?

• Buildings

• Accounts payable

• Cash

• Motor vehicles

What is considered a business asset?

• Payroll

• Marketing

• Machinery

• Rent

How is net income calculated?

• Cost of goods sold minus payroll

• Sales minus taxes

• Revenues minus expenses, interest and taxes

• Expenses minus interest

What does a net loss indicate?

• Income exceeds expenses

• Expenses are less than income

• Income equals expenses

• Total expenses exceed income

What does an income statement focus on?

• Assets and Liabilities

• Cash flow

• Owner's Equity

• Revenue, expenses, gains and losses

What is the goal of an investment?

• Generating income

• Paying off debts

• Reducing expenses

• Increasing liabilities

What does liquidity refer to?

• Market price of an asset

• Conversion of assets into cash

• Efficiency of liabilities

• Control of expenses

What is the most liquid asset of all?

• Machinery

• Cash

• Buildings

• Motor vehicles

What does a cash flow statement provide data regarding?

• All cash outflows

• Cash inflows from operations

• Investment returns

• Market prices of assets

Who are investors?

• Companies that sell products

• People who work in finance

• Individuals who save money

• Any person or entity that expects to receive financial returns