1. The language of business is:

• a: Sales
• b: Profits
• c: Accounting

2. The 3 financial scorecards that tell you how well a business is doing are:

• a: Profit & loss statement, income statement, balance sheet
• b: Profit & loss statement, balance sheet, statement of cash flow
• c: Accrual accounts, Cash accounts, Tax accounts

3. A balance sheet has three major sections. They are:

• a: Sales, expenses and profit
• b: Assets, cash and accounts receivable
• c: Assets, liabilities and owners equity

4. Owners equity is defined as:

• a: The difference between assets and liabilities
• b: Retained profit
• c: The shareholders investment

5. There are 3 types of cash flow. Which is most critical?

• a: Investing
• b: Financing
• c: Operating

6. To be able to effectively analyse your accounts, you want your accounts prepared using which method?

• a) Cash
• b) Accrual
• c) Bank reconciliation

7. Net profit and cash are:

• a) The same thing
• b) Closely correlated
• c) Not related in any way whatsoever

8. Revenue minus COGS equals:

• a) Net profit
• b) Gross profit
• c) Overhead