Financial Record-Keeping and Management Quiz

Test your knowledge on accounting principles, financial statements, ratios, and more with this comprehensive quiz on financial record-keeping.

Practice Learn Test

Which of the following is an example of a current asset?

Accounts receivable

Machinery

Buildings

Land

What does ROI stand for in finance?

Return on Investment

Risk of Inflation

Revenue of Income

Rate of Interest

What does the acronym GAAP stand for in accounting?

Generally Accepted Accounting Principles

Global Accounting and Audit Procedures

General Accounting and Audit Protocols

Generally Associated Accounting Procedures

Which financial statement shows a company's financial position at a specific point in time?

Balance sheet

Income statement

Cash flow statement

Statement of retained earnings

What is the purpose of the statement of cash flows?

To show the company's overall financial performance

To provide information on the company's assets and liabilities

To show how changes in balance sheet accounts and income affect cash and cash equivalents

To list the company's revenue and expenses over a period of time

Which financial statement shows a company's revenues and expenses?

Income statement

Balance sheet

Cash flow statement

Statement of retained earnings

What is the formula to calculate the debt-to-equity ratio?

Total debt / Total equity

Total equity / Total debt

Total debt - Total equity

Total equity - Total debt

What is the purpose of double-entry bookkeeping?

To track only income

To track both income and expenses

To track only expenses

To track assets only

Which of the following is NOT a component of the time value of money?

Present value

Future value

Interest rate

Revenue

#10

What is depreciation in accounting?

An increase in the value of assets

The process of writing off the cost of assets over their useful lives

A decrease in the value of liabilities

The process of increasing the value of assets over time

#11

What does the term 'EBITDA' stand for in finance?

Earnings Before Interest, Taxes, Depreciation, and Amortization

Earnings Before Income and Taxes, Deductions, and Amortization

Estimated Budget for Income Tax Deductions and Amortization

Earnings Before Interest and Taxes, Depreciation, and Amortization

#12

What is the purpose of the accrual accounting method?

To record transactions only when cash is exchanged

To record transactions when they occur, regardless of when cash is exchanged

To record transactions only when they generate profit

To record transactions when they generate losses

#13

What is the purpose of a budget in financial management?

To summarize a company's financial position

To record transactions as they occur

To estimate future income and expenses

To report financial results to shareholders

#14

What is the purpose of the FASB (Financial Accounting Standards Board)?

To regulate stock exchanges

To oversee monetary policy

To establish and improve financial accounting and reporting standards

To manage government budgets

#15

What is the purpose of the International Financial Reporting Standards (IFRS)?

To regulate tax laws

To provide a global framework for accounting standards