Question 1

What is capital?

Accepted Answer

Contribution to the business

Answer

Total expenses

Answer

Asset value

Answer

Profits earned

Question 2

What are liabilities?

Accepted Answer

Debts of a business

Answer

Investment earnings

Answer

Business assets

Answer

Business profits

Question 3

What is income?

Accepted Answer

Money earned from goods/services

Answer

Bank deposits

Answer

Employee salaries

Answer

Business expenses

Question 4

What are expenses?

Accepted Answer

Costs of running a business

Answer

Credit card debt

Answer

Business income

Answer

Personal savings

Question 5

What is profit?

Accepted Answer

Money left after expenses

Answer

Business liabilities

Answer

Investment income

Answer

Personal savings

Question 6

Why keep financial records?

Accepted Answer

To track money in/out

Answer

For personal use

Answer

For legal compliance

Answer

To hide business activity

Question 7

Who prepares financial records?

Accepted Answer

Bookkeepers

Answer

Tax auditors

Answer

Business owners

Answer

Marketing managers

Question 8

What is a transaction?

Accepted Answer

Business deal

Answer

Marketing campaign

Answer

Employee contract

Answer

Tax return

Question 9

What is capital?

Accepted Answer

The contribution to the business in the form of money or other items

Answer

The money saved in a bank account

Answer

The income earned from selling goods

Answer

The cost of running a business

Question 10

What are assets?

Accepted Answer

The possessions of a business used to provide products or services

Answer

The money borrowed from a bank

Answer

The debts of a business

Answer

The costs of running a business

Question 11

What is income?

Accepted Answer

Money earned from selling goods or services

Answer

The costs of running a business

Answer

The money saved in a bank account

Answer

The money borrowed from a bank

Question 12

What is profit?

Accepted Answer

The amount left over after all expenses have been paid

Answer

The money saved in a bank account

Answer

The debts of a business

Answer

The money borrowed from a bank

Question 13

Why keep financial records?

Accepted Answer

To track money coming in, going out, and spending details

Answer

To ignore financial aspects of the business

Answer

To prevent budgeting and planning

Answer

To increase expenses and debts

Question 14

What are liabilities?

Accepted Answer

The debts of a business, including borrowed funds and money owed to suppliers

Answer

The income earned from selling goods

Answer

The possessions of a business

Answer

The costs of running a business

Question 15

What are expenses?

Accepted Answer

The costs incurred in running a business, such as wages, utilities, and supplies

Answer

The debts of a business

Answer

The money earned from selling goods or services

Answer

The income saved in a bank account

Question 16

What is a loss?

Accepted Answer

Occurs when expenses exceed income in a business

Answer

The money saved in a bank account

Answer

The amount left over after expenses are paid

Answer

The possessions of a business

Question 17

What is a transaction?

Accepted Answer

Any business deal or activity recorded on a source document

Answer

The debts of a business

Answer

The money borrowed from a bank

Answer

The possessions of a business

Question 18

Why prepare a budget?

Accepted Answer

To plan how money will be received and spent, preventing overspending

Answer

To ignore financial aspects of the business

Answer

To have unlimited financial resources

Answer

To increase expenses and debts

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