CS CS Financial & Accounting Basics 1

Question 1

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

Accepted Answer

Accounts receivable

Answer

Accounts receivable represents money customers owe the business for goods or services already delivered.

Question 2

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

Accepted Answer

Balance sheet

Answer

The balance sheet provides a snapshot of a company's financial position at a given date.

Question 3

Petty cash funds are used primarily for:

Accepted Answer

Small, routine office expenses

Answer

Petty cash covers minor day-to-day expenses such as postage, office supplies, or small refreshments.

Question 4

What does an invoice represent?

Accepted Answer

A bill sent to a customer requesting payment

Answer

An invoice is a document sent by a seller to a buyer listing goods or services provided and the amount due.

Question 5

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

Accepted Answer

Monthly rent

Answer

Fixed expenses remain constant each period regardless of business activity, such as monthly rent.

(CS) Certified Secretary Practice Test