{"id":2872,"date":"2023-02-22T21:42:33","date_gmt":"2023-02-22T21:42:33","guid":{"rendered":"https:\/\/course.oeru.org\/ient103\/?page_id=2872"},"modified":"2023-02-22T21:42:33","modified_gmt":"2023-02-22T21:42:33","slug":"quiz","status":"publish","type":"page","link":"https:\/\/course.oeru.org\/ient103\/learning-pathways\/understanding-financial-statements\/quiz\/","title":{"rendered":"Quiz"},"content":{"rendered":"<div id=\"content\" class=\"mw-body container\" role=\"main\">\n<div class=\"row\">\n<div class=\"col-md-12\">\n<div class=\"panel\">\n<div class=\"panel-body\">\n<div id=\"bodyContent\">\n<div id=\"mw-content-text\" lang=\"en\" dir=\"ltr\" class=\"mw-content-ltr\">\n<p>\n<\/p>\n<div class=\"floatright\"><a href=\"https:\/\/wikieducator.org\/File:Test_sign.jpg\" class=\"image\"><img loading=\"lazy\" decoding=\"async\" alt=\"Test sign.jpg\" src=\"\/\/wikieducator.org\/images\/thumb\/e\/eb\/Test_sign.jpg\/320px-Test_sign.jpg\" width=\"320\" height=\"226\" class=\"img-responsive\"><\/a><\/div>\n<p>The questions which follow provide a basic knowledge test of selected concepts covered in this learning pathway: <i>Understanding financial statements<\/i>.<\/p>\n<p>The questions published at the end of each learning pathway are re-used for the knowledge test for learners interested in earning a digital badge or certificate of participation for the <i>Financing a business start-up<\/i> (IENT103) micro-course. Please consult the <a href=\"https:\/\/wikieducator.org\/Introduction_to_entrepreneurship\/IENT103\/Assessment\/Certify_participation\" title=\"Introduction to entrepreneurship\/IENT103\/Assessment\/Certify participation\">Certify participation page<\/a> for more information.<br style=\"clear:both;\">\n<\/p>\n<div class=\"panel iDevice WEquizMultipleChoice\">\n\t<div class=\"panel-heading idevice-heading\">\n\t\t<div>\n\t\t\t<img decoding=\"async\" class=\"pedagogicalicon\" alt=\"assessment\" src=\"https:\/\/course.oeru.org\/ient103\/wp-content\/themes\/oeru_course\/idevices\/Icon_qmark.png\">\n\t\t<\/div>\n\t\t<div>\n\t\t\t<h2>True - false questions<\/h2>\n\t\t<\/div>\n\t<\/div>\n\t<div class=\"panel-body\">\n\t\t<div class=\"col-md-12\">\n\t\t\t\n<p>Indicate whether the following statements are true or false:\n<\/p>\n<ul>\n<li>An income statement is based on the profit and loss account.\n<ul>\n<li>True\n<ul>\n<li>Yes, that\u2019s correct.\n<\/li>\n<\/ul>\n<\/li>\n<li>False\n<ul>\n<li> No, the statement is true. It can also be called a profit and loss statement.\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>A balance sheet is like a photo of a company at a particular point in time.\n<ul>\n<li>True\n<ul>\n<li> Yes, this is true.\n<\/li>\n<\/ul>\n<\/li>\n<li>False\n<ul>\n<li> Incorrect.  A balance sheet is often described as a \u2018snapshot\u2019 of a company\u2019s financial position.\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>A profit and loss statement shows how much cash (or cash equivalents) enters and leaves a company.\n<ul>\n<li>True\n<ul>\n<li> Incorrect. A profit and loss statement shows a company\u2019s income and expenditure over a specified period of time.\n<\/li>\n<\/ul>\n<\/li>\n<li>False\n<ul>\n<li> Yes, that\u2019s correct.\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>Cash flow statements help you determine the net worth of a company.\n<ul>\n<li>True\n<ul>\n<li> No,  a cash flow statement shows the cash coming in and leaving the company during a particular period of time; it shows the cash position of the company, but does not reflect net worth or profitability.\n<\/li>\n<\/ul>\n<\/li>\n<li>False\n<ul>\n<li> Yes, that\u2019s correct.\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>\n<\/p>\n<p>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/p>\n<p>\n<\/p>\n<div class=\"panel iDevice WEquizMultipleChoice WEquizMix\">\n\t<div class=\"panel-heading idevice-heading\">\n\t\t<div>\n\t\t\t<img decoding=\"async\" class=\"pedagogicalicon\" alt=\"assessment\" src=\"https:\/\/course.oeru.org\/ient103\/wp-content\/themes\/oeru_course\/idevices\/Icon_qmark.png\">\n\t\t<\/div>\n\t\t<div>\n\t\t\t<h2>Multiple choice questions<\/h2>\n\t\t<\/div>\n\t<\/div>\n\t<div class=\"panel-body\">\n\t\t<div class=\"col-md-12\">\n\t\t\t\n<ul>\n<li>An income statement is based on which ONE of the following equations?\n<ul>\n<li>Profit = Fixed assets + Current assets\n<ul>\n<li>No, try again.\n<\/li>\n<\/ul>\n<\/li>\n<li>Profit = Income &#8211; Expenses\n<ul>\n<li>Yes, this is correct.\n<\/li>\n<\/ul>\n<\/li>\n<li>Income = Sales &#8211; Salary expenses\n<ul>\n<li>No, try again.\n<\/li>\n<\/ul>\n<\/li>\n<li>Income = Sales + Assets\n<ul>\n<li>No, try again.\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>Which ONE of the following statements about a Profit and Loss Account is NOT correct?\n<ul>\n<li>A Profit and Loss Account shows how much money the business will make after all expenses are taken into consideration\n<ul>\n<li>This statement is correct.\n<\/li>\n<\/ul>\n<\/li>\n<li>A Profit and Loss Account can help business owners identify cash flow problems\n<ul>\n<li>Well done! This statement is NOT correct. A Profit and Loss account does not reveal cash flow problems.\n<\/li>\n<\/ul>\n<\/li>\n<li>A Profit and Loss Account shows the net profit of a company\n<ul>\n<li>This statement is correct; it does show the net profit of a company, or the difference between income and expenses.\n<\/li>\n<\/ul>\n<\/li>\n<li>A Profit and Loss Account shows sales and expenses over a period of time, rather than at a point in time\n<ul>\n<li>This statement is correct. A Profit and Loss Account shows sales and expenses over a period of time, while a Balance Sheet shows the financial condition of a company at a point in time.\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>Indicate which ONE of the following statements about a Balance Sheet is FALSE:\n<ul>\n<li>A Balance Sheet is the same thing as a statement of net worth\n<ul>\n<li>This statement is true. It is also sometimes called a statement of financial position.\n<\/li>\n<\/ul>\n<\/li>\n<li>An up-to-date Balance Sheet is essential if a business owner wants to arrange additional finance\n<ul>\n<li>This statement is true.\n<\/li>\n<\/ul>\n<\/li>\n<li>In a Balance Sheet, total assets must be the same as total liabilities plus equity\n<ul>\n<li>This statement is true. The Balance Sheet must balance.\n<\/li>\n<\/ul>\n<\/li>\n<li>A Balance Sheet gives the most complete picture possible of a company\u2019s financial position\n<ul>\n<li>This statement is false. A Balance Sheet does provide valuable information, but should be looked at alongside the Income Statement and Cash Flow Statement, to give the fullest picture possible.\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>Indicate which ONE of the following statements about a Cash Flow Statement is INCORRECT:\n<ul>\n<li>A Cash Flow Statement shows the actual amount of money a company receives from its operations\n<ul>\n<li>This statement is correct. It shows the cash coming in and going out of a company over a certain period of time.\n<\/li>\n<\/ul>\n<\/li>\n<li>A Cash Flow Statement does not indicate whether a company is profitable or not\n<ul>\n<li>This statement is correct. It shows the cash position of a company at a given point in time, not the profit (or loss).\n<\/li>\n<\/ul>\n<\/li>\n<li>In a Cash Flow Statement, costs are included in the month that they are incurred, rather than spreading annual amounts equally over 12 months\n<ul>\n<li>This statement is true.\n<\/li>\n<\/ul>\n<\/li>\n<li>A Cash Flow Statement is always for historical performance (i.e. it reports on what has happened)\n<ul>\n<li>Well done! This statement is incorrect. A Cash Flow Statement can also be used to forecast what is likely to happen in the future and is therefore a powerful tool for start-up businesses.\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>\n<\/p>\n<p>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/p>\n<p>\n<\/p>\n<p><!-- \nNewPP limit report\nCPU time usage: 0.057 seconds\nReal time usage: 0.064 seconds\nPreprocessor visited node count: 285\/1000000\nPreprocessor generated node count: 1246\/1000000\nPost\u2010expand include size: 29886\/2097152 bytes\nTemplate argument size: 20737\/2097152 bytes\nHighest expansion depth: 10\/40\nExpensive parser function count: 0\/100\n--><\/p>\n<p><!-- Saved in parser cache with key we_en-mw_:pcache:idhash:185372-0!*!0!*!*!2!* and timestamp 20230222104222 and revision id 1067311\n -->\n<\/div>\n<div class=\"visualClear\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-12\">\n<ul class=\"pager\">\n<li class=\"previous\">\n            <a href=\"\/ient103\/learning-pathways\/understanding-financial-statements\/outputs-financial-statements-learning-challenge\">\u2190 Previous<\/a>\n          <\/li>\n<li class=\"next\">\n            <a href=\"\/ient103\/learning-pathways\/financing-a-new-start-up\/overview\">Next \u2192<\/a>\n          <\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<div id=\"wenote-ids\"><script type='text\/javascript' id='wenotes-ids'>\n    var WEnotesSite = \"https:\/\/wikieducator.org\";\n    var WEnotesPath = \"\/Introduction_to_entrepreneurship\/IENT103\/Statements\/Quiz\";\n    var WEnotesSiteID = \"0e3d258fbd36841f92259eefcd41d5e9\";\n    var WEnotesPathID = \"b29274fd7b5b873dabad1a3905d2c83c\";\n    var WEnotesIDs = { site: \"https:\/\/wikieducator.org\", path: \"\/Introduction_to_entrepreneurship\/IENT103\/Statements\/Quiz\", site_id: \"0e3d258fbd36841f92259eefcd41d5e9\", path_id: \"b29274fd7b5b873dabad1a3905d2c83c\" };\n<\/script><\/div>\n<\/div>\n<footer><\/footer>\n","protected":false},"excerpt":{"rendered":"<p>The questions which follow provide a basic knowledge test of selected concepts covered in this learning pathway: Understanding financial statements. The questions published at the end of each learning pathway are re-used for the knowledge test for learners interested in earning a digital badge or certificate of participation for the Financing a business start-up (IENT103) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":2852,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-2872","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/course.oeru.org\/ient103\/wp-json\/wp\/v2\/pages\/2872","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/course.oeru.org\/ient103\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/course.oeru.org\/ient103\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/ient103\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/ient103\/wp-json\/wp\/v2\/comments?post=2872"}],"version-history":[{"count":1,"href":"https:\/\/course.oeru.org\/ient103\/wp-json\/wp\/v2\/pages\/2872\/revisions"}],"predecessor-version":[{"id":2873,"href":"https:\/\/course.oeru.org\/ient103\/wp-json\/wp\/v2\/pages\/2872\/revisions\/2873"}],"up":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/ient103\/wp-json\/wp\/v2\/pages\/2852"}],"wp:attachment":[{"href":"https:\/\/course.oeru.org\/ient103\/wp-json\/wp\/v2\/media?parent=2872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}