Finance unit business review quiz

Fixed assets are assets that:

Held for a long time and are not very liquid

Assets that are liquid are easier to spend than assets that are not liquid

True

Operating expenses include

utility bills.

The accounting equation is

assets = liabilities + owner's equity.

The debts of a company are called

liabilities.

Which of the following is a liability for a business?

accounts payable

The most-used financial reports in business are the

balance sheet and income statement

All of these are listed on the balance sheet except

income

How much are the liabilities for a business if its assets are $375,000 and its equity is $250,000?

$125,000

If a company just received 20 computers, how should those computers be recorded?

on its balance sheet under assets

On what type of financial record will you find the value of the building owned by a business?

balance sheet

When revenue is greater than expenses, what would likely occur?

a profit

If sales are $100,000, costs of goods sold are $60,000, what is the gross profit margin?

40%

net worth

equity

is used to calculate net income or loss

income statement

lists assets, liabilities, and equity

balance sheet

money customers owe the business

accounts receivable

things owned, such as cash and buildings

assets

Cash is an:

Asset

Spending money on a social media advertising campaign is a:

Expense

When your company sells merchandise to a customer that is a:

Revenue

Mr. Jacobs bought a house this summer. The house is an asset but the loan is a:

Liability

You have a lawn mowing company. What is your lawn mower?

Asset

Which of the following assets is the least liquid

A giant warehouse