Accounting and Finance Terms Quiz

1. Accounting and Finance TermsQuiz Write the correct answers on a clean sheet of paper. Numbered 1-15.

2. ASSETS = LIABILITIES + OWNER’S EQUITY. • Income Statement • Budget • Accounting Equation • Referred to as “take home pay” • Assets • Net Pay • Owner’s Equity

3. Money that a company earns • Revenue • Liabilities • Payroll • When expenses > income • Profit • Net Pay • Loss

4. Costs of maintaining and operating a business • Revenue • Expenses • Budget • Money owed by the business (debts, accounts payable) • Income • Liabilities • Profit

5. Professional who records, prepares, examines, and summarizes financial information • Accountant • Auditor • Insurance Representative • Anything of of value that is owned by the business • Revenue • Income • Assets

6. Certified Public Accountant • Stock Broker • Bank Teller • CPA • The recording of each financial transaction of a business in an orderly systematic fashion • Accounting • Budgeting • Financing

7. A money management plan (lists what you have and what you must spend) • Accounting • Balance Sheet • Budget • When income > expenses • Liabilities • Loss • Profit

8. Net worth of the business • Assets • Owner’s Equity • Expenses • Financial statement that reports the changes in the owner’s equity account during the fiscal period. • Statement of Change in Owner’s Equity • Income Statement • Balance Sheet

9. Accounting Quiz Key • How did you do on the quiz???

10. Key • 1 C—Accounting Equation • 2 B—Net Pay • 3 A—Revenue • 4 C–Loss • 5 B—Expenses • 6 B—Liabilities • 7 A—Accountant • 8 C—Assets

11. Key, continued • 9 C—CPA • 10 A—Accounting • 11 C—Budget • 12 C—Profit • 13 B—Owner’s Equity • 14 A—Statement of Change in Owner’s Equity