Terminologies Used In A Company Account - SS2 Accounting Past Questions and Answers - page 1
What is equity?
The income generated by a company from its sales of goods or services
The gradual decrease in value of an asset over time
The amount of revenue left over after all expenses have been paid
The value of the company that is owned by shareholders
Which financial statement shows a company's assets, liabilities, and equity at a specific point in time?
Income statement
Cash flow statement
Balance sheet
Profit and loss statement
What are expenses?
The costs incurred by a company in order to generate revenue
The income generated by a company from its sales of goods or services
The obligations that a company owes to others
The resources that a company owns or controls that have a monetary value
What is amortization?
The gradual decrease in value of an intangible asset over time
The gradual decrease in value of a tangible asset over time
The increase in value of an asset over time
The process of evaluating a company's financial records and processes
What is depreciation?
The gradual increase in value of an asset over time
The gradual decrease in value of a tangible asset over time
The process of evaluating a company's financial records and processes
The gradual decrease in value of an intangible asset over time
What is the difference between revenue and profit?
Revenue is the income generated by a company from its sales of goods or services, while profit is the amount of revenue left over after all expenses have been paid.
What is the purpose of an audit?
The purpose of an audit is to provide an independent examination of a company's financial records and processes to ensure that they are accurate and comply with relevant laws and regulations.