CS CS Financial & Accounting Basics

Question 1

What is the term for money owed TO a business by its customers?

Accepted Answer

Accounts receivable

Answer

Accounts payable

Answer

Petty cash

Answer

Capital expenditure

Question 2

Which financial document summarizes a company's assets, liabilities, and equity at a specific point in time?

Accepted Answer

Balance sheet

Answer

Income statement

Answer

Cash flow statement

Answer

Budget report

Question 3

Petty cash funds are used primarily for:

Accepted Answer

Small, routine office expenses

Answer

Paying employee salaries

Answer

Major capital purchases

Answer

Tax payments

Question 4

What does an invoice represent?

Accepted Answer

A bill sent to a customer requesting payment

Answer

A receipt for payment already made

Answer

A bank reconciliation statement

Answer

A payroll record

Question 5

Which of the following is an example of a fixed expense?

Accepted Answer

Monthly rent

Answer

Office supply purchases

Answer

Overtime pay

Answer

Travel reimbursements

Question 6

Bank reconciliation is performed to:

Accepted Answer

Match the company's records with the bank statement

Answer

Calculate employee bonuses

Answer

Prepare tax returns

Answer

Process vendor payments