Finance for Non Finance - Day 2 - Part 1

Which term refers to the process of recording and communicating financial information in the past?

• • Accounting

• • Finance

• • Asset

• • Liability

What is the primary purpose of financial statements?

• • To follow industry trends.

• • To provide a clear picture of a company's financial health.

• • To impress potential investors.

• • To track employee hours.

A company receives cash sales amounting $5,000 from a customer

• • Debit Revenue

  • Credit Cash

• • Debit Cash

  • Credit Revenue

• • Debit Service Revenue Credit Cash

• • None of the above

Which financial statement shows a company's financial position at a specific point in time?

• Statement of Profit or Loss

• Statement of Financial Position

• Statement of Cash Flow

• Statement of Changes in Equity

The debt ratio is calculated as

• Total assets / Total liabilities

• Current assets / Current liabilities

• Total liabilities / Total assets

• Current liabilities / Current assets

Which of the following is an example of a liability?

• Notes Payable

• Inventories

• Salaries

• Cash

Expenses are recorded on which financial statement?

• Balance Sheet

• Notes to the Account

• Income Statement

• Cash Flow Statement