FINANCE-1

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Welcome to your Finance Test-1

Name
1. 
What is goodwill in accounting?

2. 
What is the accounting equation?

3. 
What is an adjusting entry?

4. 
What is the normal balance of an asset account?

5. 
Which financial statement provides a snapshot of a company’s financial position at a specific point in time?

6. 
What is depreciation?

7. 
Which of the following is a method of amortization?

8. 
What is the main purpose of a trial balance?

9. 
What does GAAP stand for?

10. 
Which method of inventory valuation assumes that the first items placed in inventory are the first sold?

11. 
What does a balance sheet include?

12. 
What is the purpose of a cash flow statement?

13. 
What does the term "accrual" refer to in accounting?

14. 
What is retained earnings?

15. 
Which financial statement shows the changes in equity over a period of time?

16. 
Which financial statement shows a company’s revenues and expenses?

17. 
Which of the following is a current asset?

18. 
What is double-entry bookkeeping?

19. 
Which of the following is an intangible asset?

20. 
What is a contra account?

21. 
What is the formula for calculating gross profit?

22. 
What is the purpose of an income statement?

23. 
Which of the following is a liability?

24. 
What is the purpose of an audit?

25. 
What is a ledger?

Amjad Buriro

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