Strand 5 And 6 Vocab Review Question Preview (ID: 34335)
Strand 5 And 6 Review.
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In general, the higher the risk you are willing to take....
a) The higher the reward could be
b) The lower the reward will probably be
c) The more debt you will have
d) The less money you will have
A distribution of a portion of a company's earnings to its shareholders.
a) Dividend
b) Stock
c) Reward
d) Bond
If you buy a stock for $53 and sell it for $60 you will have a....
a) $7 gain
b) $7 loss
c) $53 gain
d) $60 gain
A collection of stocks or bonds in a big fund that you can own shares of.
a) Mutual Fund
b) Stock
c) Bond
d) Risk
Shares of ownership in a company
a) Stocks
b) Bonds
c) Mutual Funds
d) Dividends
When and investor loans money to an entity (usually government) for a period of time for an interest rate. Like an IOU.
a) Bonds
b) Stocks
c) Mutual Funds
d) Debt
All are reported on an Income Statement EXCEPT
a) Revenue
b) Expenses
c) Net Income/Net Loss
d) Assets
When the business's expenses are greater than its income the business has a....
a) Net Income
b) Net Loss
c) Balance Sheet
d) Income Statement
Which of the following is NOT reported on a balance sheet?
a) Revenue
b) Assets
c) Owner's Equity
d) Liabilities
A balance sheet is a report on the financial health of a business.
a) Over a range of time
b) On a specific day
c) For the entire year
d) For one quarter of a year
May is in the __________ quarter of the accounting year.
a) 2nd
b) 3rd
c) 1st
d) 4th
Debts that a business owes are called....
a) Liabilities
b) Assets
c) Liquidity
d) Equity
Forecasting your future Income and Expenses and planning where your money will go is called...
a) Spending
b) Budgeting
c) Balancing
d) Paying
Anything of value that is owned by an individual or a business
a) Assets
b) Liabilities
c) Owner's Equity
d) Liquidity
All of the following are examples of assets EXCEPT...
a) Cash
b) Credit Card Bill
c) Equipment
d) Computer
The idea that money at the present time is worth more than the same amount in the future due to its potential earning capacity.
a) Time value of money
b) Mutual Fund management
c) Compound interest
d) Risk/return
The accounting equation is...
a) Assets + Liabilities = Owner's Equity
b) Assets = Liabilities + Owner's Equity
c) Assets = Liabilities = Owner's Equity
d) Assets - Liabilities = Owner's Equity
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