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

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

3.Money that a company earns a.Revenue b.Liabilities c.Payroll 4.When expenses > income a.Profit b.Net Pay c.Loss

5.Costs of maintaining and operating a business a.Revenue b.Expenses c.Budget 6.Money owed by the business (debts, accounts payable) a.Income b.Liabilities c.Profit

7.Professional who records, prepares, examines, and summarizes financial information a.Accountant b.Auditor c.Insurance Representative 8.Anything of of value that is owned by the business a.Revenue b.Income c.Assets

9.Certified Public Accountant a.Stock Broker b.Bank Teller c.CPA 10.The recording of each financial transaction of a business in an orderly systematic fashion a.Accounting b.Budgeting c.Financing

11.A money management plan (lists what you have and what you must spend) a.Accounting b.Balance Sheet c.Budget 12.When income > expenses a.Liabilities b.Loss c.Profit

13.Net worth of the business a.Assets b.Owner’s Equity c.Expenses 14.Financial statement that reports the changes in the owner’s equity account during the fiscal period. a.Statement of Change in Owner’s Equity b.Income Statement c.Balance Sheet

Accounting Quiz Key How did you do on the quiz???

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

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