Vocabulary for Describing Finance and Accounting

Instructions:
This quiz is designed to help students test their knowledge of vocabulary and terms related to finance and accounting. There are 10 multiple choice questions, each with 4 possible answers. Read each question carefully and choose the answer that you think is correct. Good luck!

I.

Which of the following terms is used to describe the process of controlling and monitoring expenses?
A. Budgeting
B. Auditing
C. Accounting
D. Investing

II.

What type of financial document shows the sources and uses of funds over a specified period of time?
A. Profit and Loss Statement
B. Balance Sheet
C. Cash Flow Statement
D. Income Tax Return

III.
What is the term used to describe income that comes from investments rather than work?
A. Capital gains
B. Passive income
C. Dividend
D. Interest

IV.
What term is used to describe a situation in which an organization owns more liabilities than assets?
A. Deficit
B. Negative Balance
C. Inflation
D. Insolvency

V.
What type of financial document shows the performance of a company over a specific period of time?
A. Profit and Loss Statement
B. Balance Sheet
C. Cash Flow Statement
D. Income Tax Return

VI.
What term is used to describe money that needs to be paid out of pocket for expenses?
A. Capital gains
B. Outlays
C. Deficit
D. Interest

VII.
What type of financial document shows a company’s financial position at a single point in time?
A. Profit and Loss Statement
B. Balance Sheet
C. Cash Flow Statement
D. Income Tax Return

VIII.
What is the term used to describe money that needs to be paid out of pocket for expenses?
A. Capital gains
B. Outlays
C. Deficit
D. Interest

IX.
What is the term used to describe a company’s ability to manage its finances effectively?
A. Capital gains
B. Financial literacy
C. Financial strategy
D. Financial stability

X.
What is the term used to describe the practice of spreading out the cost of an investment over multiple financial periods?
A. Capital gains
B. Depreciation
C. Deficit
D. Interest

Hope and Expectations:
We hope that by taking this quiz, you will gain a better understanding of important finance and accounting terms and be better prepared to discuss financial topics in future conversations. Good luck!