Practice Common Terms And Their Meanings (14.9) - Introduction to Financial and Management Accounting

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9 questions

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6 sample questions

Question 1.
What is an asset?
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Think about what the business has.
Question 2.
Define liability.
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Consider debts or loans.
3Question 3.
What is considered an asset in a business?
- A loan
- Machinery
- Insurance
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Consider the definition of something owned.
4Question 4.
Liabilities are obligations owed to others. True or False?
- True
- False
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Think of debts.
Question 5.
If a company has assets worth $500,000 and liabilities amounting to $200,000, what is its equity?
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Remember the main accounting equation.
Question 6.
A company invests $150,000 in equipment (capital expenditure) and spends $10,000 on monthly rent (operating expenditure). How do these affect their cash flow?
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Think about short-term vs. long-term financial impact.

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