Fun with Accounting and Finance

What is the primary purpose of accounting?

• To create new products

• To record, summarize, and report financial transactions

• To manage employees

• To design marketing strategies

Which of the following is an example of an asset?

• Loan

• Salary

• Building

• Tax

• $70

• $60

• $50

• $40

What is the formula for calculating profit?

• Revenue - Expenses

• Assets - Liabilities

• Income + Expenses

• Revenue + Liabilities

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

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Statement of Retained Earnings

• $300,000

• $700,000

• $200,000

• $500,000

Which of the following is a liability?

• Cash

• Inventory

• Accounts Payable

• Equipment

What is the term for money earned from selling goods or services?

• Expense

• Revenue

• Liability

• Asset

If you save $50 every month, how much will you have saved in a year?

• $500

• $600

• $700

• $800

Which of the following is an example of an expense?

• Loan

• Salary

• Building

• Tax