EL 3.3 Finance Quiz

Which of the following is NOT something an effective financial plan does?

• identify the assets that are needed
• describe the amount of money needed
• describe how a business will document its finances
• identify the salaries of future employees

Which terms refers to a systematic process of recording and reporting the financial position of a person or organization?

• financial planning
• forecasting
• budgeting
• accounting

Which of the representation of the accounting equation?

• assets = liabilities + owner's equity
• liability = assets + owner's equity
• assets + owner's equity = liabilities
• owner's equity + revenue = assets

The purpose of a financial plan is to

• project future income.
• see if there is enough money to start the business.
• describe the assets that need to be purchased to start a business.
• All of the above.

Accounting is often called the language of

• communication
• business
• finance
• math

A set of documents that outline essential financial facts about a new venture

• financial plan
• capital
• financial forecast
• budget
• property

An owner's claim to the assets of the business

• owner's equity
• financial plan
• capital
• financial forecast
• budget

A plan specifying how money will be used or spent during a particular period.

• budget
• financial plan
• capital
• financial forecast
• property

Money supplied by investors, banks, or owners of a business.

• capital
• financial plan
• financial forecast
• budget
• property

Financial claims to all assets

• equity
• financial plan
• capital
• financial forecast
• budget