White Belt - Assignment I

What is the primary purpose of accounting for a business owner?

• To track personal expenses

• To monitor the inflow and outflow of money in the business

• To manage employees

• To advertise the business

What are the detailed reports generated through accounting called?

• A) Budget Plans

• B) Business Records
  

• C) Financial Statements
  

• D) Tax Forms

What does a Cash Flow Statement track?

• A) Only the income of a business

• B) The inflow and outflow of cash from a business
  

• C) The profit and loss of a business
  

• D) Only the expenses of a business

What is the difference between cash inflow and outflow called?

• A) Gross Profit

• B) Net Revenue

• C) Net Cash Flow

• D) Operating Income

What is another name for the Income Statement?

• A) Cash Flow Statement

• B) Profit & Loss Account (P&L)
  

• C) Balance Sheet

• D) Business Report

Which of the following equations is correct for a Balance Sheet?

• A) Equity = Assets + Liabilities

• B) Assets = Equity × Liabilities
  

• C) Liabilities = Assets - Equity

• D) Assets = Equity + Liabilities

What is the link between the Profit & Loss Statement and the Balance Sheet?

• A) Net Profit/Loss

• B) Gross Profit

• C) Gross Loss

• None of the above

What principle is followed when recording business transactions?

• A) Every asset must equal liabilities

• B) Every debit will have an equal credit

• C) Every income must exceed expenses

• D) Every liability must have an equity

How many accounts are affected by every business transaction?

• Atleast 1

• Atleast 2

• Atleast 3

• Atleast 4

Ajit Sharma transfers ₹50,000/- from her ICICI Bank Account to her Cash Account. There is no inflow or outflow of money from her business as it is just a transfer between two accounts.

What type of entry is this?

• A) Sales

• B) Purchase

• C) Contra

• D) Payment