Mastery Check
Final Examination
Answer all 20 questions. You need 14 correct (70%) to pass.
#1
Which of the following represents the fundamental Accounting Equation?
#2
Which financial statement is described as a 'snapshot' measured at a specific point in time?
#3
In personal finance, 'Equity' is most commonly referred to as:
#4
What is the primary formula for the Income Statement?
#5
Which of the following is considered a 'Current Liability' because it must generally be paid off within one year?
#6
If you have $50,000 in Assets and $20,000 in Liabilities, what is your Equity (or Net Worth)?
#7
Which of the following is classified as a 'Current Asset' (a resource you can access immediately or sell quickly)?
#8
'Cost of Goods Sold' (COGS) refers to:
#9
If a company buys a delivery truck for $40,000 using cash, which category of the Balance Sheet does the truck belong to?
#10
Which of the following expenses is generally EXCLUDED from the calculation of 'Operating Income' because it is related to financing, not daily operations?
#11
Which financial statement answers the question: 'Did you generate cash, or did cash leave your hands this period?'
#12
You run a bakery. You sell $10,000 worth of cakes. The flour and sugar cost $3,000. Your rent and utilities for your office cost $2,000. What is your Gross Profit?
#13
Your business owns a machine that loses value over time. You record a depreciation expense of $1,000. How does this affect your financial statements?
#14
Buying a home or purchasing investments for retirement falls under which section of the Cash Flow Statement?
#15
If your 'Operating Cash Flow' is consistently negative in personal finance, what does this usually signal?
#16
How does Net Income from the Income Statement interact with the Balance Sheet?
#17
Scenario: You buy a car for $30,000. You pay $5,000 in cash and take out a loan for $25,000. How does this affect your Balance Sheet immediately?
#18
Which of the following is categorized as a 'Financing Activity' on the Cash Flow Statement?
#19
Why might a company with positive Net Income go bankrupt?
#20