Business Finance & Accounting – Revision Worksheet
Section A: Multiple Choice Questions (1 mark each)
1. Which financial statement shows a company’s revenues and expenses over a
period?
A. Balance Sheet
B. Cash Flow Statement
C. Income Statement
D. Statement of Retained Earnings
Answer: C
2. What does ROI stand for in finance?
A. Return on Investment
B. Rate of Interest
C. Revenue on Inventory
D. Return on Insurance
Answer: A
3. Depreciation is:
A. An asset appreciation method
B. The process of allocating the cost of a tangible asset over its useful life
C. A type of revenue
D. A method of increasing asset value
Answer: B
4. Which accounting principle assumes that a business will continue operating
indefinitely?
A. Matching Principle
B. Going Concern Principle
C. Conservatism Principle
D. Cost Principle
Answer: B
5. In double-entry bookkeeping, every transaction must:
A. Affect only one account
B. Have equal debit and credit entries
C. Increase assets only
D. Decrease liabilities only
Answer: B
6. Liquidity ratios measure:
A. Profitability
B. Ability to meet short-term obligations
C. Market share
Section A: Multiple Choice Questions (1 mark each)
1. Which financial statement shows a company’s revenues and expenses over a
period?
A. Balance Sheet
B. Cash Flow Statement
C. Income Statement
D. Statement of Retained Earnings
Answer: C
2. What does ROI stand for in finance?
A. Return on Investment
B. Rate of Interest
C. Revenue on Inventory
D. Return on Insurance
Answer: A
3. Depreciation is:
A. An asset appreciation method
B. The process of allocating the cost of a tangible asset over its useful life
C. A type of revenue
D. A method of increasing asset value
Answer: B
4. Which accounting principle assumes that a business will continue operating
indefinitely?
A. Matching Principle
B. Going Concern Principle
C. Conservatism Principle
D. Cost Principle
Answer: B
5. In double-entry bookkeeping, every transaction must:
A. Affect only one account
B. Have equal debit and credit entries
C. Increase assets only
D. Decrease liabilities only
Answer: B
6. Liquidity ratios measure:
A. Profitability
B. Ability to meet short-term obligations
C. Market share
