#1
What is the term for the act of buying goods or services?
Purchasing
ExplanationThe action of acquiring goods or services in exchange for money or other consideration.
#2
What is the term for the right to use someone else's property for a specific period in exchange for payment?
Lease
ExplanationA contractual arrangement granting the right to use property owned by another party for a specified time.
#3
What is the term for the process of comparing actual financial results against the planned or expected results?
Variance Analysis
ExplanationThe process of investigating the difference between actual financial outcomes and anticipated results.
#4
In the context of financial markets, what does the acronym ETF stand for?
Exchange-Traded Fund
ExplanationAn investment fund traded on stock exchanges, much like stocks, that holds assets such as stocks, commodities, or bonds.
#5
What is the term for the process of recording, summarizing, and analyzing financial transactions of a business?
Accounting
ExplanationThe systematic process of identifying, recording, measuring, classifying, summarizing, analyzing, and communicating financial information.
#6
In accounting, what does the acronym FIFO stand for?
First In, First Out
ExplanationA method of inventory valuation where the oldest inventory items are sold or used first.
#7
Which of the following is an example of an intangible possession?
Patent
ExplanationA form of intellectual property that grants exclusive rights to an invention or process.
#8
In the context of e-commerce, what does the acronym B2B stand for?
Business to Business
ExplanationTransactions conducted between businesses, such as manufacturers, wholesalers, and retailers.
#9
Which financial document provides a snapshot of a company's financial condition at a specific point in time?
Balance Sheet
ExplanationA financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific date.
#10
In retail, what does the acronym POS stand for?
Point of Sale
ExplanationThe location where a transaction occurs between a seller and a buyer, typically involving the exchange of goods or services for payment.
#11
What is the primary purpose of a purchase order?
To authorize a purchase
ExplanationA document issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services.
#12
What is the term for the legal process of transferring ownership of a property or asset?
Conveyance
ExplanationThe legal act of transferring property or assets from one party to another.
#13
What is the term for the process of estimating the value of a property for taxation or insurance purposes?
Appraisal
ExplanationThe act of assessing the value of real or personal property for various purposes, including taxation, insurance, or sale.
#14
Which of the following is an example of a fixed asset?
Land
ExplanationTangible assets with a long-term useful life that are used in the operation of a business and not intended for sale.
#15
Which inventory valuation method assumes that the oldest items are sold first?
LIFO (Last In, First Out)
ExplanationA method of inventory valuation where the last items purchased or produced are the first to be expensed or sold.