Below you’ll find 10 multiple-choice questions to help you assess your knowledge of finance and budgeting essentials. Answers appear after the test.
1. If you want to recognize the costs connected to a sale during the period when the sale was made, which accounting method would you use?
a. Accrual accounting
b. Cash-based accounting
2. Which of the following would be considered part of cost of goods sold, or COGS?
a. Administrative employee salaries
b. Sales and marketing costs
d. Labor costs for assembling the product
e. Advertising costs
3. In most accounting systems, short-term or current liabilities are those that must be paid in less than:
a. One month
b. Three months
c. One year
4. If the income statement can tell ...