15 Questions
Which financial statement is used to calculate profits and losses?
Income statement
What is the main purpose of break even point analysis?
To determine the amount of sales needed to cover costs
What is the difference between fixed and current assets?
Fixed assets have a longer maturity date than current assets
Which financial statement is used to calculate taxation?
Income statement
What are the three types of activities that cash flow is based on?
Operating, investment, and financing
What is the major goal of the income statement?
To calculate profits and losses
What is the difference between proprietorships, partnerships, and corporations?
The number of owners
What does the break even point analysis calculate?
The amount of revenue needed to cover all costs
What determines the distinction between fixed and current assets?
The maturity date of the investments
What is the main factor that determines whether an asset is considered fixed or current?
The due time maturity of the investment
What does the break even point analysis calculate?
The sales needed to cover costs
What are the three main types of firms?
Sole proprietorships, partnerships, and limited liability companies
What is the basis for calculating total assets?
Liabilities and equity
When should firms elaborate their financial statements?
At the end of the fiscal year
What is the basis for the present value break even point investment rule?
Opportunity cost of the initial investment
Test your knowledge of basic accounting concepts with this quiz! From taxation and cash flow to fixed and current assets, this quiz covers key terms and ideas in accounting. See how much you know about income statements, break even point analysis, and more.
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