Republic Act No.

10922 or service in the consumer’s

entitled: "AN ACT DECLARING mind.
### 7. **What is "capital" in
THE SECOND WEEK OF
business?**
NOVEMBER OF EVERY YEAR
AS ECONOMIC AND - **Answer:** The financial ### 14. **What does "B2B"
FINANCIAL LITERACY assets or resources needed for stand for?**
WEEK." a business to function and
- **Answer:** Business-to-
grow.
Business.
### 1. **What is the primary
goal of a business?** ### 8. **What is the "balance
### 15. **What does "B2C"
sheet"?**
- **Answer:** To make a profit stand for?**
by providing goods or services - **Answer:** A financial
to customers. - **Answer:** Business-to-
statement that provides a
Consumer.
snapshot of a company's
financial position, showing
### 2. **What is the definition assets, liabilities, and equity.
of "entrepreneurship"?** ### 16. **What is "revenue"?**

- **Answer:** The process of - **Answer:** The income a

### 9. **What is "liquidity"?** business receives from its
starting and running a new
business, often involving normal business activities,
- **Answer:** The ability of a
innovation and risk-taking. usually from the sale of goods
company to meet its short-term
and services.
financial obligations with its
most liquid assets.
### 3. **What does the
acronym "IPO" stand for in ### 17. **What is "gross
business?** profit"?**
### 10. **What is the "break-
even point"?** - **Answer:** The difference
- **Answer:** Initial Public
Offering. between sales revenue and the
- **Answer:** The level of
cost of goods sold (COGS).
sales at which total revenues
equal total costs, resulting in no
### 4. **What is a "target profit or loss.
market"?** ### 18. **What is "net profit"?**

- **Answer:** A specific group - **Answer:** The amount of

### 11. **What is the "supply money left over after all
of consumers a company aims
chain"?** expenses, taxes, and costs are
to reach with its products or
services. deducted from revenue.
- **Answer:** The sequence
of processes involved in the
production and distribution of a
### 5. **What is meant by product, from raw materials to ### 19. **What does "SWOT
"market segmentation"?** the final consumer. analysis" stand for?**

- **Answer:** The process of - **Answer:** Strengths,

dividing a broad consumer or Weaknesses, Opportunities,
### 12. **What is "market and Threats analysis.
business market, normally
research"?**
consisting of existing and
potential customers, into sub- - **Answer:** The process of
groups of consumers based on gathering, analyzing, and ### 20. **What is a "merger"?**
some type of shared interpreting information about a - **Answer:** The
characteristics. market, including the combination of two companies
preferences, behaviors, and into one entity, usually to
needs of consumers. enhance market position or
### 6. **What is a "business reduce costs.
plan"?**
### 13. **What is "branding"?**
- **Answer:** A written
document that outlines the - **Answer:** The process of ### 21. **What is an
goals of a business, the creating a unique name, "acquisition"?**
strategy to achieve them, and design, and image for a product - **Answer:** The purchase of
the resources needed.
one company by another,
where the acquiring company rises, leading to a decrease in - **Answer:** Non-Disclosure
takes control of the target purchasing power. Agreement.
company.

### 36. **What is

### 22. **What is "corporate "outsourcing"?**
### 29. **What is "deflation"?**
governance"?**
- **Answer:** The practice of
- **Answer:** A decrease in
- **Answer:** The system of hiring external firms or
the general price level of goods
rules, practices, and processes individuals to perform tasks or
and services, typically caused
by which a company is directed services that are usually done
by a reduction in the supply of
and controlled. in-house.
money.

### 23. **What is the "P/E ### 37. **What is "supply and
### 30. **What is "competition"
ratio" (Price-to-Earnings ratio)? demand"?**
in business?**
**
- **Answer:** An economic
- **Answer:** The rivalry
- **Answer:** A valuation ratio model describing the
between companies or
of a company's current share relationship between the
businesses to win customers or
price compared to its per-share availability of a product and the
market share.
earnings. desire of buyers for it.

### 31. **What is "social

### 24. **What is a "dividend"? ### 38. **What is "cash flow"?
entrepreneurship"?**
** **
- **Answer:** The use of
- **Answer:** A payment - **Answer:** The total
entrepreneurial principles to
made by a corporation to its amount of money being
organize, create, and manage a
shareholders, usually as a transferred into and out of a
business that addresses social
distribution of profits. business, especially in relation
issues.
to its operations.

### 25. **What is a "joint

### 32. **What is "corporate
venture"?** ### 39. **What is "e-
social responsibility" (CSR)?**
commerce"?**
- **Answer:** A business
- **Answer:** A business
arrangement in which two or - **Answer:** The buying and
model where companies take
more parties agree to pool their selling of goods and services
responsibility for their impact on
resources for a specific task or over the internet.
society and the environment.
project.

### 40. **What is a "franchise"?

### 33. **What is the "law of
### 26. **What does "ROI" **
supply and demand"?**
stand for?**
- **Answer:** A type of
- **Answer:** The theory that
- **Answer:** Return on license that allows a party to
the price of a good or service is
Investment. trade under the brand name of
determined by the quantity
an established company.
available (supply) and the
desire of buyers (demand).
### 27. **What is a "savings
account"?** ### 41. **What is "scalability" in
business?**
- **Answer:** A deposit ### 34. **What is
account held at a financial "crowdfunding"?** - **Answer:** The ability of a
institution that provides a business to grow and manage
- **Answer:** The practice of
modest interest rate. increased production without
funding a project or business by
compromising performance or
raising small amounts of money
losing revenue potential.
from a large number of people,
### 28. **What is "inflation"?**
typically via the internet.
- **Answer:** The rate at
### 42. **What is "business
which the general level of
ethics"?**
prices for goods and services ### 35. **What does "NDA"
stand for in business?**
 - **Answer:** The moral - **Answer:** The water, shelter), while wants are
principles that guide the way a identification, assessment, and non-essential items or services
business behaves. prioritization of risks, followed that enhance quality of life.
by coordinated efforts to
minimize or control the
### 43. **What is "venture probability and impact of ### 6. **What is "credit"?**
capital"?** negative events.
- **Answer:** The ability to
- **Answer:** Funding borrow money or access goods
provided by investors to and services with the promise
### 50. **What is a "profit
startups and small businesses to pay later.
margin"?**
with high growth potential.
- **Answer:** A financial ratio
that represents the percentage ### 7. **What is a "credit
### 44. **What does "GDP" of profit a company makes from score"?**
stand for?** its total revenue after all
expenses are deducted. - **Answer:** A numerical
- **Answer:** Gross Domestic representation of a person’s
Product. creditworthiness based on their
credit history.
### 1. **What is financial
literacy?**
### 45. **What is "accounting"?
** - **Answer:** The ability to ### 8. **What is "debt-to-
understand and effectively income ratio"?**
- **Answer:** The process of manage personal financial
recording, classifying, and matters, including budgeting, - **Answer:** A financial ratio
summarizing financial investing, debt management, that compares an individual's
transactions to provide accurate and saving. monthly debt payments to their
and reliable financial monthly income.
information.
### 2. **What is the definition
of a "budget"?** ### 9. **What is "interest" in
### 46. **What is "human finance?**
resources"?** - **Answer:** A financial plan
that outlines expected income - **Answer:** The cost of
- **Answer:** The department and expenses over a specific borrowing money, usually
in a business responsible for period. expressed as a percentage of
managing employees and the loan amount.
overseeing recruitment,
training, and employee
### 3. **What is "gross
relations. ### 10. **What is "compound
income"?**
interest"?**
- **Answer:** The total
earnings before any deductions - **Answer:** Interest
### 47. **What is "value
such as taxes or retirement calculated on the initial
proposition"?**
contributions. principal, as well as the
- **Answer:** A statement that accumulated interest from
explains why a customer should previous periods.
buy a product or use a service,
### 4. **What is "net income"?
emphasizing its benefits and
**
value. ### 11. **What is "simple
- **Answer:** The amount of interest"?**
money remaining after all
expenses, taxes, and - **Answer:** Interest
### 48. **What is a "stock"?**
deductions have been taken calculated only on the principal
- **Answer:** A share in the from gross income. amount, not on accumulated
ownership of a company, interest.
representing a claim on part of
the company’s assets and
### 5. **What is the difference
earnings. ### 12. **What is "savings
between "wants" and "needs"?
** account"?**

- **Answer:** Needs are - **Answer:** A deposit

### 49. **What is "risk
essential for survival (like food, account held at a bank or other
management"?**
financial institution that earns
interest on the deposited to invest in stocks, bonds, and
amount. other securities.

### 13. **What is the "stock

### 26. **What is "risk
market"?**
### 20. **What is a "bond"?** management" in finance?**
- **Answer:** A marketplace
- **Answer:** A debt security - **Answer:** The
where securities, such as
in which an investor loans identification, assessment, and
stocks and bonds, are bought
money to an entity prioritization of risks, followed
and sold.
(government, corporation) in by the application of resources
exchange for periodic interest to minimize or control the
payments and the return of the likelihood and impact of
### 14. **What is
principal at maturity. adverse events.
"diversification" in investing?**
- **Answer:** The practice of
spreading investments across ### 21. **What is a "stock"?** ### 27. **What is "credit card
various assets to reduce risk. interest"?**
- **Answer:** A share in the
ownership of a company, - **Answer:** The interest
representing a claim on part of charged on the unpaid balance
### 15. **What is an
its assets and earnings. of a credit card account,
"emergency fund"?**
typically at a high annual
- **Answer:** A savings buffer percentage rate (APR).
that is set aside for unexpected ### 22. **What is a "401(k)
financial emergencies, typically plan"?**
covering 3-6 months of living ### 28. **What is "APR"
- **Answer:** A retirement
expenses. (Annual Percentage Rate)?**
savings plan offered by
employers that allows - **Answer:** The annual rate
employees to contribute a charged for borrowing or
### 16. **What is "inflation"?**
portion of their paycheck before earned through an investment,
- **Answer:** The rate at taxes. expressed as a percentage.
which the general level of
prices for goods and services
rises, eroding purchasing ### 23. **What is "dividend"?** ### 29. **What is "debt
power. consolidation"?**
- **Answer:** A payment
made by a corporation to its - **Answer:** The process of
shareholders, typically out of combining multiple debts into a
### 17. **What is "deflation"?**
profits. single loan with a lower interest
- **Answer:** A decrease in rate or easier repayment terms.
the general price level of goods
and services, often due to ### 24. **What is "capital
reduced demand or economic gain"?** ### 30. **What is "net worth"?**
recession.
- **Answer:** The profit from - **Answer:** The difference
the sale of an asset such as between an individual’s total
stocks, bonds, or real estate, assets and total liabilities.
### 18. **What is "investment"?
when the selling price is higher
** 31. **What is "personal
than the purchase price.
finance"?**
- **Answer:** The act of
allocating money to an asset or - **Answer:** The
venture with the expectation of ### 25. **What is "liquidity"?** management of an individual's
earning a return over time. financial activities, including
- **Answer:** The ease with
budgeting, saving, investing,
which an asset can be
and planning for retirement.
converted into cash without
### 19. **What is a "mutual
affecting its market price. ### 32. **What is a "financial
fund"?**
statement"?**
- **Answer:** A pool of funds
- **Answer:** A formal record
collected from many investors
of the financial activities and
position of a business, person, ### 39. **What is "taxable or interest rate to ensure price
or other entity, typically income"?** stability and economic growth.
including the balance sheet,
- **Answer:** The portion of
income statement, and cash
an individual's income that is
flow statement. ### 46. **What is "fiscal
subject to taxation, after
policy"?**
deductions and exemptions.
- **Answer:** The use of
### 33. **What is a "balance
government spending and
sheet"?**
### 40. **What is "capital taxation to influence the
- **Answer:** A financial budgeting"?** economy.
statement that lists a
- **Answer:** The process of
company’s assets, liabilities,
planning and managing
and equity as of a specific date. ### 47. **What is "insurance"?
investments in long-term
**
assets, such as equipment,
buildings, or new projects. - **Answer:** A contract in
### 34. **What is "financial
which an individual or entity
planning"?**
receives financial protection or
- **Answer:** The process of ### 41. **What is a "savings reimbursement from an insurer
setting long-term financial goals bond"?** against losses in exchange for
and creating a strategy to premium payments.
- **Answer:** A government
achieve them.
bond designed to be a low-risk
investment option, typically for
### 48. **What is "mortgage"?
individual savers.
### 35. **What is "estate **
planning"?**
- **Answer:** A loan used to
- **Answer:** The process of ### 42. **What is "payroll tax"? purchase property, where the
arranging for the disposal of ** property itself serves as
one’s assets after death, collateral for the loan.
- **Answer:** A tax imposed
including the creation of wills,
on employers and employees to
trusts, and other documents.
fund social security and
### 49. **What is "short-term
Medicare programs.
loan"?**
### 36. **What is "liability"?**
- **Answer:** A loan that is
- **Answer:** A financial ### 43. **What is "inflation scheduled to be repaid within a
obligation or debt that an rate"?** short period, typically within one
individual or business owes to year.
- **Answer:** The percentage
another party.
increase in the general level of
prices for goods and services
### 50. **What is "compound
over a specific period.
### 37. **What is "assets"?** annual growth rate" (CAGR)?**
- **Answer:** Any resource - **Answer:** The rate of
with economic value that an ### 44. **What is a "financial return that would be required
individual or business owns or advisor"?** for an investment to grow from
controls, with the expectation its beginning balance to its
- **Answer:** A professional
that it will provide future ending balance, assuming the
who provides advice on
benefits. profits were reinvested at the
investments, retirement
same rate over the time period.
planning, estate planning,
taxes, and other financial
### 38. **What is "cash flow"?
matters.
**
- **Answer:** The movement ### 1. **What is economics?**
of money into and out of an ### 45. **What is "monetary
- **Answer:** The study of
individual's or business's policy"?**
how people, businesses, and
accounts, representing income
- **Answer:** The process by governments make choices
and expenses.
which a country’s central bank about allocating resources to
controls the supply of money, satisfy needs and wants.
often targeting an inflation rate
### 2. **What is the basic ### 9. **What is the "law of
economic problem?** supply"?**
### 16. **What is
- **Answer:** Scarcity — the - **Answer:** As the price of a "unemployment"?**
limited availability of resources good increases, the quantity
- **Answer:** The condition
to meet unlimited human wants. supplied increases, and vice
where individuals who are
versa, assuming all other
capable of working, are actively
factors remain constant.
seeking work but are unable to
### 3. **What is
find employment.
"microeconomics"?**
### 10. **What is "market
- **Answer:** The branch of
equilibrium"?**
economics that focuses on ### 17. **What is the "natural
individual agents, such as - **Answer:** The point where rate of unemployment"?**
households, firms, and markets. the quantity demanded equals
- **Answer:** The
the quantity supplied, resulting
unemployment rate that exists
in a stable market price.
when the economy is at full
### 4. **What is
employment, including frictional
"macroeconomics"?**
and structural unemployment,
### 11. **What is "inflation"?**
- **Answer:** The branch of but not cyclical.
economics that studies the - **Answer:** The rate at
behavior of the economy as a which the general level of
whole, including issues like prices for goods and services ### 18. **What is "fiscal
inflation, unemployment, and rises, leading to a decrease in policy"?**
economic growth. purchasing power.
- **Answer:** Government
policy regarding taxation and
spending to influence the
### 5. **What is "opportunity ### 12. **What is "deflation"?**
economy.
cost"?**
- **Answer:** A decrease in
- **Answer:** The cost of the general price level of goods
forgoing the next best and services. ### 19. **What is "monetary
alternative when making a policy"?**
decision.
- **Answer:** Central bank
### 13. **What is the
actions, such as controlling
"consumer price index" (CPI)?**
interest rates and money
### 6. **What is "supply"?**
- **Answer:** A measure of supply, to influence economic
- **Answer:** The quantity of the average change over time activity.
a good or service that in the prices paid by urban
producers are willing to sell at consumers for a market basket
different prices over a period of of goods and services. ### 20. **What is "aggregate
time. demand"?**
- **Answer:** The total
### 14. **What is "gross
demand for goods and services
### 7. **What is "demand"?** domestic product" (GDP)?**
in an economy at different price
- **Answer:** The quantity of - **Answer:** The total value levels, including consumption,
a good or service that of all goods and services investment, government
consumers are willing and able produced within a country’s spending, and net exports.
to purchase at different prices borders in a specific time
over a period of time. period.
### 21. **What is "aggregate
supply"?**
### 8. **What is the "law of ### 15. **What is the difference
- **Answer:** The total supply
demand"?** between "nominal GDP" and
of goods and services produced
"real GDP"?**
- **Answer:** As the price of a by an economy at different
good increases, the quantity - **Answer:** Nominal GDP is price levels.
demanded decreases, and vice measured at current prices,
versa, assuming all other while real GDP is adjusted for
factors remain constant. inflation to reflect the true value ### 22. **What is "taxation"?**
of goods and services.
 - **Answer:** The process by ### 35. **What is "trade
which governments collect surplus"?**
### 29. **What is "elastic
money from individuals and
demand"?** - **Answer:** A situation
businesses to fund public
where a country exports more
services and projects. - **Answer:** When the
goods and services than it
quantity demanded of a good is
### 23. **What is the "Laffer imports.
highly responsive to price
curve"?**
changes (i.e., a large change in
- **Answer:** A theory price results in a large change
### 36. **What is "currency
suggesting that there is an in quantity demanded).
depreciation"?**
optimal tax rate that maximizes
revenue without discouraging - **Answer:** A decrease in
productivity and innovation. the value of a country's
currency relative to other
### 30. **What is "inelastic
currencies.
demand"?**
### 24. **What is "monopoly"?
** - **Answer:** When the
quantity demanded of a good is ### 37. **What is "currency
- **Answer:** A market
relatively unresponsive to price appreciation"?**
structure where a single firm
changes (i.e., a large change in
dominates the entire market - **Answer:** An increase in
price results in a small change
with no close substitutes for its the value of a country's
in quantity demanded).
product. currency relative to other
currencies.
### 31. **What is "the invisible
### 25. **What is "oligopoly"?**
hand"?**
### 38. **What is "Gross
- **Answer:** A market
- **Answer:** A metaphor National Product" (GNP)?**
structure in which a small
introduced by economist Adam
number of firms have a large - **Answer:** The total market
Smith to describe the self-
market share and can influence value of all goods and services
regulating nature of a free
prices and output. produced by the residents of a
market economy.
country, regardless of where
they are located.
### 26. **What is "perfect
### 32. **What is "consumer
competition"?**
surplus"?**
### 39. **What is "public
- **Answer:** A market
- **Answer:** The difference goods"?**
structure where many firms sell
between what consumers are
identical products, and no - **Answer:** Goods that are
willing to pay for a good and
single firm can influence the non-rivalrous and non-
what they actually pay.
market price. excludable, meaning they can
be consumed by many people
without reducing their
### 33. **What is "producer
### 27. **What is "monopolistic availability to others (e.g.,
surplus"?**
competition"?** national defense).
- **Answer:** The difference
- **Answer:** A market
between the price producers
structure where many firms sell
are willing to accept for a good ### 40. **What is "market
similar but not identical
and the price they actually failure"?**
products, and each firm has
receive.
some market power to set - **Answer:** A situation in
prices. which the market does not
efficiently allocate resources,
### 34. **What is "trade
leading to negative outcomes
deficit"?**
### 28. **What is "price like monopolies, pollution, or
elasticity of demand"?** - **Answer:** A situation underproduction of public
where a country imports more goods.
- **Answer:** A measure of
goods and services than it
how much the quantity
exports.
demanded of a good changes
### 41. **What is "externality"?
in response to a change in
**
price.
 - **Answer:** A side effect or time, usually measured by GDP - **Answer:** A financial
consequence of an economic growth. statement that presents a
activity that affects other parties company's assets, liabilities,
who did not choose to be and equity at a specific point in
involved in that particular ### 48. **What is "capitalism"? time.
activity. **
- **Answer:** An economic
### 4. **What is the "income
system in which the means of
### 42. **What is "GDP per statement"?**
production are privately owned
capita"?**
and operated for profit, with - **Answer:** A financial
- **Answer:** The gross minimal government statement that shows a
domestic product of a country interference. company’s revenues,
divided by its population, expenses, and profits over a
providing a measure of the period of time.
average income or standard of
living.

### 43. **What is "human

capital"?** ### 49. **What is "socialism"?**
### 5. **What is a "cash flow
- **Answer:** An economic statement"?**
- **Answer:** The skills,
knowledge, and experience system in which the means of
- **Answer:** A financial
possessed by individuals, which production are owned and
report that shows how changes
can be used to create economic controlled by the state or
in the balance sheet and
value. society, aiming to distribute
income statement affect cash
wealth more equally.
and cash equivalents.

### 44. **What is "capital

goods"?** ### 50. **What is
### 6. **What are "assets"?**
"communism"?**
- **Answer:** Physical assets - **Answer:** Resources
like machinery, tools, and - **Answer:** A political and
owned by a business or
buildings used in the production economic ideology advocating
individual that are expected to
of goods and services. for a classless society where all
provide future economic
property is owned communally,
benefits.
and there is no private
ownership of the means of
### 45. **What is "income
production.
inequality"?** ### 7. **What are "liabilities"?**
- **Answer:** The unequal - **Answer:** Financial
distribution of income among obligations or debts that a
individuals or households within company owes to outside
an economy. ### 1. **What is finance?**
parties, such as loans,
- **Answer:** The accounts payable, etc.
management of money,
### 46. **What is "income investments, and other financial
redistribution"?** instruments for individuals, ### 8. **What is "equity"?**
businesses, and governments.
- **Answer:** The transfer of - **Answer:** The ownership
income from wealthier interest in a company,
individuals to poorer individuals, calculated as assets minus
typically through taxes and ### 2. **What is accounting?**
liabilities.
social welfare programs. - **Answer:** The process of
recording, classifying,
summarizing, and interpreting ### 9. **What is the
### 47. **What is "economic financial transactions to provide "accounting equation"?**
growth"?** useful financial information.
- **Answer:** **Assets =
- **Answer:** The increase in Liabilities + Equity**. It
the production of goods and represents the fundamental
services in an economy over ### 3. **What is a "balance
relationship between a
sheet"?**
company's resources and the - **Answer:** The process of
claims against those resources. planning and managing
### 17. **What is "accrual
investments in long-term assets
accounting"?**
like buildings, machinery, or
### 10. **What is "revenue"?** - **Answer:** An accounting new projects.
method where revenues and
- **Answer:** The total
expenses are recorded when
income generated from the sale
they are earned or incurred, ### 24. **What is "return on
of goods or services, before
regardless of when cash is investment" (ROI)?**
any expenses are deducted.
received or paid.
- **Answer:** A financial
metric used to measure the
### 11. **What are profitability of an investment,
### 18. **What is "cash basis
"expenses"?** calculated as **ROI = (Net
accounting"?**
Profit / Cost of Investment) ×
- **Answer:** The costs 100**.
- **Answer:** An accounting
incurred by a business in order
method where revenues and
to generate revenue, such as
expenses are recorded when
wages, rent, and utilities.
cash is received or paid. ### 25. **What is "financial
leverage"?**

### 12. **What is "gross - **Answer:** The use of

### 19. **What is "double-entry
profit"?** borrowed funds to finance
bookkeeping"?**
investments, which can
- **Answer:** The difference increase the potential return on
- **Answer:** An accounting
between sales revenue and the equity but also increases risk.
system where every transaction
cost of goods sold (COGS),
affects at least two accounts,
before operating expenses are
with one being debited and the
subtracted.
other being credited, ensuring ### 26. **What is "interest
that the accounting equation expense"?**
remains balanced.
### 13. **What is "net profit"?** - **Answer:** The cost
incurred by a business for
- **Answer:** The amount of borrowed funds, usually
money left after all expenses, ### 20. **What is a "chart of
expressed as an annual
taxes, and costs are deducted accounts"?**
percentage rate.
from revenue.
- **Answer:** A list of all the
accounts used in an
organization's general ledger, ### 27. **What is a "profit
### 14. **What is "working categorized into assets, margin"?**
capital"?** liabilities, equity, revenue, and
- **Answer:** A financial ratio
- **Answer:** The difference expenses.
that shows the percentage of
between a company’s current profit a company makes from its
assets and current liabilities. It total revenue. It is calculated as
measures a company's ability to ### 21. **What is "accounts
**Net Profit / Revenue × 100**.
pay short-term obligations. payable"?**
- **Answer:** The amount a
company owes to its suppliers ### 28. **What is "liquidity"?**
### 15. **What is or creditors for goods or
"depreciation"?** - **Answer:** A measure of
services purchased on credit.
how quickly and easily an asset
- **Answer:** The allocation can be converted into cash
of the cost of a tangible asset without affecting its price.
over its useful life. ### 22. **What is "accounts
receivable"?**
- **Answer:** The amount of ### 29. **What is the "current
### 16. **What is money a company is owed by ratio"?**
"amortization"?** customers who have purchased
- **Answer:** A liquidity ratio
- **Answer:** The gradual goods or services on credit.
that measures a company’s
write-off of the value of an ability to pay its short-term
intangible asset over time, obligations. It is calculated as
similar to depreciation for ### 23. **What is "capital
tangible assets. budgeting"?**
**Current Assets / Current - **Answer:** A financial
Liabilities**. instrument whose value is
### 37. **What is "Earnings
derived from the value of an
### 30. **What is the "quick Before Interest and Taxes"
underlying asset, such as
ratio"?** (EBIT)?**
options, futures, or swaps.
- **Answer:** A stricter - **Answer:** A measure of a
measure of liquidity than the company’s profitability that
current ratio, calculated as excludes interest and income ### 44. **What is "hedging"?**
**(Current Assets - Inventory) / tax expenses. It is used to
- **Answer:** The practice of
Current Liabilities**. analyze the operational
making an investment to reduce
efficiency.
### 31. **What is "cost of the risk of adverse price
goods sold" (COGS)?** ### 38. **What is "earnings per movements in an asset, often
share" (EPS)?** by using derivatives.
- **Answer:** The direct costs
attributable to the production of - **Answer:** A company’s
goods sold by a company, net profit divided by the number
### 45. **What is a "mutual
including labor, materials, and of outstanding shares of its
fund"?**
manufacturing expenses. common stock. It measures the
profitability of a company on a - **Answer:** A pool of funds
per-share basis. collected from many investors
### 32. **What is "net worth"?** to invest in a diversified
portfolio of stocks, bonds, or
- **Answer:** The total value
### 39. **What is "capital other securities.
of a person’s or company’s
gains"?**
assets minus liabilities. It
represents the financial health - **Answer:** The profit from
### 46. **What is "bond"?**
of the entity. the sale of an asset, such as
stocks or real estate, where the - **Answer:** A debt security
selling price exceeds the where the issuer borrows
### 33. **What is "audit"?** purchase price. money from investors and
agrees to pay back the principal
- **Answer:** An independent
with interest at a later date.
examination of financial records
### 40. **What is "working
and statements to ensure
capital management"?**
accuracy, consistency, and
### 47. **What is "interest
compliance with accounting - **Answer:** The
rate"?**
standards. management of a company’s
short-term assets and liabilities - **Answer:** The percentage
to ensure efficient operation charged by a lender to a
### 34. **What is "capital and liquidity. borrower for the use of money,
structure"?** typically expressed annually.
- **Answer:** The mix of debt
### 41. **What is
and equity that a company uses
"diversification" in investing?** ### 48. **What is "bank
to finance its operations and
reconciliation"?**
growth. - **Answer:** The practice of
spreading investments across - **Answer:** The process of
various assets or sectors to comparing a company’s bank
### 35. **What is "stockholder reduce risk. statement with its internal
equity"?** records to ensure they match
and resolve any discrepancies.
- **Answer:** The value of a
### 42. **What is "spread" in
company's assets minus its
finance?**
liabilities, representing the
### 49. **What is "financial
owners' claim on the business. - **Answer:** The difference
leverage ratio"?**
between two prices, rates, or
yields, such as the bid-ask - **Answer:** A ratio that
### 36. **What is "dividend"?** spread in trading or the interest indicates the proportion of debt
rate spread in lending. a company uses to finance its
- **Answer:** A portion of a
assets, calculated as **Total
company’s earnings paid to
Debt / Total Equity**.
shareholders, typically in cash
### 43. **What is "derivative"?
or additional shares. ### 50. **What is "cost
**
accounting"?**
 - **Answer:** A type of - **Answer:** The price the right, causing the price to
accounting that focuses on typically falls to restore decrease and the quantity to
capturing a company’s total equilibrium, as producers increase. A decrease in supply
cost of production by assessing reduce prices to sell off excess shifts the supply curve to the
variable and fixed costs. goods. left, causing the price to
increase and the quantity to
### 1. **What is the Law of
decrease.
Supply?**
### 7. **What happens to the
- **Answer:** The Law of price of a product when there is
Supply states that, all else an excess demand (shortage)? ### 12. **What is "elasticity of
being equal, an increase in the ** demand"?**
price of a good or service will
- **Answer:** The price - **Answer:** Elasticity of
lead to an increase in the
typically rises as consumers are demand measures how
quantity supplied of that good
willing to pay more for the responsive the quantity
or service, and a decrease in
limited supply, pushing the demanded is to a change in
price will lead to a decrease in
market toward equilibrium. price. If demand is elastic, a
the quantity supplied.
small change in price results in
a large change in quantity
### 8. **What is the "demand demanded.
### 2. **What is the Law of
curve"?**
Demand?**
- **Answer:** The demand
- **Answer:** The Law of ### 13. **What is "inelastic
curve is a graphical
Demand states that, all else demand"?**
representation of the Law of
being equal, as the price of a
Demand, showing the - **Answer:** Inelastic
good or service increases, the
relationship between the price demand occurs when the
quantity demanded decreases,
of a good and the quantity quantity demanded is not
and as the price decreases, the
demanded. significantly affected by a price
quantity demanded increases.
change. This typically happens
with essential goods or
### 9. **What is the "supply services.
### 3. **What happens to the
curve"?**
quantity demanded when the
price of a product decreases?** - **Answer:** The supply
### 14. **What is a "price
curve is a graphical
- **Answer:** The quantity ceiling"?**
representation of the Law of
demanded increases, according
Supply, showing the - **Answer:** A price ceiling is
to the Law of Demand.
relationship between the price a government-imposed limit on
of a good and the quantity how high a price can be
supplied. charged for a good or service,
### 4. **What happens to the
often set below the market
quantity supplied when the
equilibrium price to make goods
price of a product increases?**
### 10. **How does a shift in more affordable.
- **Answer:** The quantity demand affect the market price
supplied increases, according and quantity?**
to the Law of Supply. ### 15. **What is a "price
- **Answer:** An increase in
floor"?**
demand shifts the demand
curve to the right, causing both - **Answer:** A price floor is a
### 5. **What is a "market
the price and quantity to government-imposed limit on
equilibrium"?**
increase. A decrease in how low a price can be charged
- **Answer:** Market demand shifts the demand for a good or service, often set
equilibrium occurs when the curve to the left, causing both above the market equilibrium
quantity demanded equals the the price and quantity to price to ensure producers
quantity supplied, resulting in a decrease. receive a minimum income.
stable market price.

### 11. **How does a shift in ### 16. **What is the effect of a
### 6. **What happens to the supply affect the market price price ceiling on the supply and
price of a product when there is and quantity?** demand of a good?**
an excess supply (surplus)?**
- **Answer:** An increase in - **Answer:** A price ceiling,
supply shifts the supply curve to when set below the equilibrium
price, causes a shortage, as - **Answer:** Commercial 9. **What is "debit"?**
demand exceeds supply at the banks and investment banks.
- **Answer:** A payment
lower price.
method that directly withdraws
money from a bank account
3. **What is the role of a central
when making a purchase.
### 17. **What is the effect of a bank?**
price floor on the supply and
- **Answer:** A central bank
demand of a good?**
regulates the money supply, 10. **What is "overdraft"?**
- **Answer:** A price floor, manages interest rates, and
- **Answer:** A situation
when set above the equilibrium oversees the banking system to
where a bank account balance
price, causes a surplus, as ensure financial stability.
goes below zero, often resulting
supply exceeds demand at the
in fees.
higher price.

4. **What is a "checking 11. **What is "collateral" in

### 18. **What does it mean if
account"?** lending?**
a product has a "perfectly
inelastic" demand?** - **Answer:** A bank account - **Answer:** An asset
that allows withdrawals and pledged by a borrower to
- **Answer:** Perfectly
deposits, typically used for daily secure a loan, which the lender
inelastic demand means that
transactions. can claim if the loan is not
the quantity demanded does
repaid.
not change regardless of the
price. The demand curve is
vertical. 5. **What is a "savings
account"?** 12. **What is the "prime rate"?
**
- **Answer:** A bank account
### 19. **What is "market that earns interest on the - **Answer:** The interest
demand"?** deposited money, typically used rate that commercial banks
for saving rather than frequent charge their most creditworthy
- **Answer:** Market demand
transactions. customers, often used as a
is the total quantity of a good or
benchmark for other loans.
service demanded by all
consumers in a market at
various prices. 6. **What is "interest" in
banking?** 13. **What is "financial
inclusion"?**
- **Answer:** A fee paid by a
### 20. **What is "market borrower to a lender for the use - **Answer:** The availability
supply"?** of money, typically expressed and equality of opportunities to
as a percentage rate. access financial services for
- **Answer:** Market supply is
individuals and businesses,
the total quantity of a good or
particularly in underserved
service that producers are
7. **What is the purpose of an areas.
willing to sell at various prices.
"ATM"?**
- **Answer:** An Automated
14. **What is "money
### **Banking Questions** Teller Machine (ATM) allows
laundering"?**
bank customers to withdraw
cash, deposit money, and - **Answer:** The process of
1. **What is a bank?** perform other banking activities concealing the origins of
without a bank representative. illegally obtained money,
- **Answer:** A financial
typically by means of transfers
institution that accepts deposits
or transactions that make it
from the public, creates credit,
8. **What is "credit"?** appear legitimate.
and provides loans and other
financial services. - **Answer:** The ability to
borrow money or access goods
15. **What is "bank
and services with the promise
reconciliation"?**
2. **What are the two main to pay for them later.
types of banks?** - **Answer:** The process of
comparing a company's internal
financial records with the bank - **Answer:** Banking - **Answer:** A payment
statement to ensure services provided through method that allows customers
consistency and accuracy. digital channels, such as mobile to pay by tapping their debit or
apps, websites, and online credit card, or smartphone, on a
platforms, rather than traditional payment terminal without
16. **What is "loan origination"? brick-and-mortar branches. entering a PIN or signature.
**
- **Answer:** The process
22. **What is a "mobile banking 28. **What is "FinTech"?**
through which a borrower
app"?**
applies for a loan, and the - **Answer:** Financial
lender processes the - **Answer:** An application Technology (FinTech) refers to
application and disburses the for smartphones that allows the innovative use of
loan. customers to access banking technology to deliver financial
services like transferring funds, services, including digital
paying bills, or checking payments, loans, and
17. **What does "FDIC" stand balances. insurance.
for?**
- **Answer:** Federal
23. **What is "online banking"? 29. **What is "Blockchain
Deposit Insurance Corporation,
** technology" in digital banking?
which insures deposits in U.S.
**
commercial banks up to a - **Answer:** A service that
certain amount. allows customers to conduct - **Answer:** A
financial transactions through decentralized, distributed ledger
the internet, including checking technology used to securely
18. **What is a "fixed deposit" balances, making transfers, and record transactions across
or "certificate of deposit" (CD)? paying bills. multiple computers, providing
** transparency and reducing
fraud.
- **Answer:** A financial
24. **What is "neobank"?**
product offered by banks that
pays a fixed interest rate for a - **Answer:** A type of digital
30. **What is "digital currency"
fixed term. bank that operates entirely
or "cryptocurrency"?**
online, without physical
branches, offering banking - **Answer:** A form of
19. **What is "a bank services through mobile apps currency that is digital,
statement"?** and websites. decentralized, and uses
cryptography for secure
- **Answer:** A monthly transactions, like Bitcoin or
record provided by a bank that Ethereum.
25. **What is "two-factor
details all the transactions in a
authentication" (2FA)?**
customer's account during a
given period. - **Answer:** A security
31. **What is "P2P lending"?**
process that requires two forms
of identification to access an - **Answer:** Peer-to-peer
20. **What is "a loan account, such as a password lending, where individuals can
agreement"?** and a one-time code sent to a lend money directly to other
mobile device. individuals or businesses via
- **Answer:** A formal online platforms, bypassing
contract between a lender and traditional banks.
a borrower that outlines the
26. **What is "e-wallet"?**
terms of a loan, including
repayment schedule, interest - **Answer:** A digital wallet
32. **What is "robo-advisory"?**
rate, and collateral. that stores payment
information, allowing users to - **Answer:** Automated
make transactions online or financial advice provided
Digital Banking Questions** through mobile apps. through algorithms and digital
platforms, typically used for
investment management.
21. **What is "digital banking"? 27. **What is "contactless
** payment"?**
33. **What is "open banking"?**
 - **Answer:** A system 39. **What is a "smart contract" 45. **What is "decentralization"
where banks and financial in digital banking?** in blockchain?**
institutions share customer data
- **Answer:** A self- - **Answer:** The
with third-party providers (with
executing contract with the characteristic of blockchain
customer consent) to develop
terms of the agreement directly where data is distributed across
new financial products and
written into code, often used in a network of computers,
services.
blockchain to automate eliminating the need for a
processes like payments or central authority to control or
asset transfers. verify transactions.
34. **What is "cybersecurity" in
digital banking?**
- **Answer:** The practice of 40. **What is "peer-to-peer
protecting digital banking payment"?**
systems and user data from
- **Answer:** A system that
cyber threats like hacking,
allows individuals to transfer
fraud, and data breaches.
money directly to others via 46. **What is "smart contract" in
digital platforms, such as Zelle blockchain?**
or Cash App.
35. **What is "instant - **Answer:** A self-
payment"?** ### **Blockchain Questions** executing contract with terms of
the agreement written in code,
- **Answer:** A payment 41. **What is "blockchain"?**
enabling automated execution
system that enables the
- **Answer:** A distributed of transactions on a blockchain
immediate transfer of funds
ledger technology that securely without the need for
from one account to another,
records transactions across intermediaries.
available 24/7, with no delays.
multiple computers, ensuring
transparency and preventing
tampering. 47. **What is "Ethereum"?**
36. **What is "API" in the
context of digital banking?** - **Answer:** A
decentralized, open-source
- **Answer:** Application 42. **What is "Bitcoin"?**
blockchain platform that
Programming Interface (API)
- **Answer:** The first supports smart contracts and
enables different software
decentralized digital currency, decentralized applications
systems to communicate and
created using blockchain (dApps), and is the second-
share data, allowing third-party
technology, that operates largest cryptocurrency by
developers to build apps that
without the need for a central market capitalization.
integrate with bank systems.
authority like a bank.

48. **What is a "cryptocurrency

37. **What is a "digital wallet"
43. **What is a "block" in wallet"?**
like PayPal or Venmo?**
blockchain technology?**
- **Answer:** A digital wallet
- **Answer:** A type of online
- **Answer:** A block is a used to store and manage
payment system that allows
collection of transaction data cryptocurrency like Bitcoin or
individuals to store money
that is permanently recorded in Ethereum, which allows users
digitally and use it for online
the blockchain, linked to the to send, receive, and store
transactions or send money to
previous block to form a chain. digital assets.
others.

44. **What is "mining" in the 49. **What is "hashing" in

38. **What is "biometric
context of blockchain?** blockchain?**
authentication" in banking?**
- **Answer:** The process by - **Answer:** Hashing is the
- **Answer:** The use of
which new cryptocurrency process of converting
unique physical characteristics
transactions are verified and transaction data into a fixed-
(such as fingerprints, facial
added to the blockchain, and length string of characters,
recognition, or voice
new coins are created through creating a unique identifier for
recognition) to verify the identity
complex computational each block in the blockchain.
of a bank customer for secure
algorithms.
transactions.
50. **What is a "ledger" in 6. **What is "diversification" in
blockchain?** investing?**
12. **What is a "blue-chip
- **Answer:** A digital record - **Answer:** Diversification is stock"?**
of all transactions that is the strategy of spreading
- **Answer:** A blue-chip
continuously updated and investments across different
stock is a share of a well-
verified asset classes (stocks, bonds,
established, financially stable
real estate) to reduce risk.
### **Investment Questions** company known for reliability,
stability, and consistent growth.
7. **What is a "portfolio"?**
1. **What is an investment?**
- **Answer:** A portfolio is a 13. **What is "real estate
- **Answer:** An investment
collection of investments owned investment"?**
is the act of allocating money or
by an individual or institution,
resources to an asset, venture, - **Answer:** Real estate
which may include stocks,
or project with the expectation investment involves buying,
bonds, real estate, and other
of generating income or profit owning, managing, renting, or
assets.
over time. selling real estate properties for
profit.
8. **What is "asset allocation"?
2. **What is a "stock"?**
**
14. **What is an "exchange-
- **Answer:** A stock is a
- **Answer:** Asset allocation traded fund" (ETF)?**
share in the ownership of a
is the process of dividing
company, representing a claim - **Answer:** An ETF is a
investments among different
on part of the company’s assets type of investment fund that
asset categories, such as
and earnings. holds assets such as stocks,
stocks, bonds, and cash, to
commodities, or bonds and is
balance risk and return
traded on stock exchanges,
according to an investor's
3. **What is "bonds" in much like a stock.
goals.
investing?**
- **Answer:** Bonds are debt
15. **What is "market
securities issued by 9. **What is "capital gain"?**
capitalization"?**
governments or corporations to
- **Answer:** Capital gain is
raise capital, where investors - **Answer:** Market
the profit made from the sale of
receive periodic interest capitalization refers to the total
an asset, such as stocks,
payments and the return of market value of a company's
bonds, or real estate, when the
principal at maturity. outstanding shares, calculated
selling price exceeds the
by multiplying the stock price by
purchase price.
the number of shares in
4. **What is the difference circulation.
between "stocks" and "bonds"?
10. **What is "risk tolerance" in
**
investing?**
16. **What is "compound
- **Answer:** Stocks
- **Answer:** Risk tolerance interest"?**
represent ownership in a
is an investor’s ability and
company, while bonds are - **Answer:** Compound
willingness to endure declines
loans made to companies or interest is the interest on both
in the value of their
governments, where the the initial principal and the
investments, typically
investor earns interest and accumulated interest from
determined by factors such as
receives repayment of principal. previous periods, resulting in
time horizon, financial situation,
interest being earned on
and emotional capacity.
interest.
5. **What is a "mutual fund"?**
- **Answer:** A mutual fund is 11. **What is a "dividend"?**
17. **What is "liquidity" in terms
an investment vehicle that
- **Answer:** A dividend is a of investment?**
pools together money from
payment made by a company
many investors to invest in a - **Answer:** Liquidity refers
to its shareholders, typically in
diversified portfolio of stocks, to how easily an asset can be
the form of cash or additional
bonds, or other securities. bought or sold in the market
shares, as a distribution of
without affecting its price. Cash
profits.
is the most liquid asset.
 - **Answer:** Compound the future due to its potential
interest is calculated using the earning capacity.
18. **What is "inflation risk"?**
formula **A = P(1 + r/n)^(nt)**,
- **Answer:** Inflation risk is where **A** is the amount of
the possibility that inflation will money accumulated after 30. **What is "discount rate"?**
erode the purchasing power of interest, **P** is the principal,
**r** is the annual interest rate, - **Answer:** The discount
money, affecting the real return
**n** is the number of times rate is the interest rate used to
on investments.
interest is compounded per determine the present value of
year, and **t** is the time in future cash flows, representing
years. the opportunity cost of capital.
19. **What is a "risk-free
investment"?**
- **Answer:** A risk-free 25. **What is the "interest 31. **What is "present value"?**
investment is an investment rate"?** - **Answer:** Present value
that is expected to return the
- **Answer:** The interest is the current value of a sum of
principal amount with little or no
rate is the percentage at which money to be received or paid in
risk of loss, such as a
interest is charged on a loan or the future, discounted at a
government bond.
paid on an investment, typically particular interest rate.
expressed annually.
20. **What is "investment
32. **What is "future value"?**
horizon"?**
26. **What is the difference - **Answer:** Future value is
- **Answer:** Investment between "nominal interest rate" the value of an investment or
horizon refers to the length of and "real interest rate"?** cash flow at a specified date in
time an investor expects to hold
- **Answer:** The nominal the future, based on a specific
an investment before needing
interest rate is the stated rate interest rate and time period.
to access the funds.
without adjusting for inflation,
### **Interest Questions** while the real interest rate
adjusts for inflation to reflect the 33. **What is "interest-bearing
21. **What is "simple interest"?
true cost of borrowing or the account"?**
**
true return on investment.
- **Answer:** An interest-
- **Answer:** Simple interest
bearing account is a type of
is calculated only on the
bank account that earns
principal amount of an 27. **What is "annual interest on the deposited funds,
investment or loan, without percentage rate" (APR)?** such as a savings account.
compounding.
- **Answer:** APR is the
yearly interest rate charged for
borrowing or earned through an 34. **What is "credit card
22. **What is "compound
investment, including fees and interest"?**
interest"?**
other costs.
- **Answer:** Credit card
- **Answer:** Compound
interest is the interest charged
interest is calculated on both
on the outstanding balance of a
the principal and the 28. **What is "effective annual credit card if it is not paid in full
accumulated interest from rate" (EAR)?** by the due date.
previous periods, resulting in
interest being earned on - **Answer:** EAR is the
interest. interest rate that reflects the
effects of compounding over a 35. **What is "interest accrual"?
given period, expressed as an **
23. **How is simple interest annual rate.
- **Answer:** Interest accrual
calculated?** refers to the process of interest
being added to the principal
- **Answer:** Simple interest 29. **What is "time value of amount of a loan or investment,
is calculated using the formula money"?** typically over time.
**Interest = Principal × Rate ×
Time**. - **Answer:** Time value of
money is the concept that
money available today is worth 36. **What is the "effective
more than the same amount in interest rate" (EIR)?**
24. **How is compound interest
calculated?**
 - **Answer:** The effective and withdraw funds, typically term, with the principal paid at
interest rate is the true annual used for long-term saving. maturity.
rate of interest earned or paid
on an investment or loan,
accounting for the effect of 43. **What is a "high-yield 49. **What is the "rule of 72"?**
compounding. savings account"?**
- **Answer:** The Rule of 72
- **Answer:** A high-yield is a formula used to estimate
savings account is a type of the number of years required to
37. **What is "interest
savings account that offers a double an investment at a given
capitalization"?**
higher interest rate than a annual interest rate by dividing
- **Answer:** Interest standard savings account. 72 by the interest rate.
capitalization refers to adding
the accrued interest to the
principal balance of a loan or 44. **What is the difference 50. **What is "retirement
investment, increasing the between a "savings account" savings"?**
amount on which future interest and a "checking account"?**
is calculated. - **Answer:** Retirement
- **Answer:** A savings savings refers to money set
account is used for long-term aside for use during retirement,
saving and earns interest, while typically in accounts such as
38. **What is "simple interest
a checking account is designed 401(k) plans, IRAs, or pension
formula"?**
for frequent transactions and plans.
- **Answer:** The formula for typically does not earn interest.
simple interest is **Interest =
Principal × Rate × Time**. 1. What is accounting?
45. **What is "emergency
Answer: Accounting is the
fund"?**
process of recording,
39. **What is "amortization"?**
- **Answer:** An emergency summarizing, and reporting
- **Answer:** Amortization is fund is a reserve of money set financial transactions of a
the process of gradually paying aside for unexpected expenses, business or organization to
off a debt over time through such as medical bills, car provide an accurate picture of
regular payments, often used in repairs, or job loss. its financial position.
the context of loans.

46. **What is "compound 2. What are the basic financial

40. **What is "capitalized savings"?** statements?
interest"?**
:** Compound savings refers to Answer: The basic financial
- **Answer:** Capitalized savings that earn interest on statements are the balance
interest is interest that is added both the initial deposit and the sheet, income statement,
to the principal balance of a accumulated interest from statement of cash flows, and
loan, rather than being paid as previous periods. statement of changes in equity.
it accrues.
### **Savings Questions**
47. **What is "paying yourself
41. **What is "savings"?** first"?**
3. What is the balance sheet?
- **Answer:** Savings refers - **Answer:** Paying yourself
Answer: The balance sheet is a
to the portion of income that is first is the practice of
financial statement that shows
not spent on consumption, but automatically saving a portion
a company's assets, liabilities,
is instead set aside for future of income before spending on
and equity at a specific point in
use or investment. other expenses.
time.

42. **What is "savings 48. **What is a "CD" or

4. What is an income
account"?** "certificate of deposit"?**
statement?
- **Answer:** A savings - **Answer:** A certificate of
Answer: The income statement
account is a type of bank deposit (CD) is a time deposit
shows a company's revenues,
account that allows individuals offered by banks that pays a
expenses, and profits or losses
to deposit money, earn interest, fixed interest rate for a specified
over a specific period of time.
 a decrease in assets or Answer: Accounts receivable
expenses. refers to money owed to a
5. What is a statement of cash
business by its customers for
flows? 13. What is the general ledger?
goods or services provided on
Answer: The statement of cash Answer: The general ledger is a credit.
flows shows the cash inflows complete record of all financial
22. What are accounts
and outflows from operating, transactions within an
payable?
investing, and financing organization, organized by
activities over a period of time. accounts. Answer: Accounts payable
refers to money owed by a
14. What is a trial balance?
business to its suppliers or
6. What is equity in accounting? Answer: A trial balance is a creditors for goods or services
report that lists the balances of received on credit.
Answer: Equity refers to the
all general ledger accounts to
ownership interest in a 23. What is a journal entry?
ensure that total debits equal
business, calculated as assets
total credits. Answer: A journal entry is a
minus liabilities.
record of a financial transaction
15. What is depreciation?
7. What is an asset? in the accounting system, which
Answer: Depreciation is the includes the accounts affected,
Answer: An asset is anything of the amounts, and whether they
allocation of the cost of a long-
value that is owned by a are debited or credited.
term asset over its useful life.
business, such as cash,
inventory, buildings, or 16. What is amortization? 24. What is an invoice?
equipment.
Answer: Amortization is the Answer: An invoice is a
8. What is a liability? process of gradually writing off document issued by a seller to
the value of an intangible asset a buyer that lists the goods or
Answer: A liability is a financial services provided, along with
over time.
obligation or debt owed by a the amounts owed.
business, such as loans, 17. What is accrual accounting?
accounts payable, or 25. What is inventory?
Answer: Accrual accounting
mortgages.
recognizes revenues and Answer: Inventory refers to
9. What is the accounting expenses when they are goods and materials a business
equation? incurred, regardless of when holds for the purpose of resale
cash is received or paid. or production.
Answer: The accounting
equation is Assets = Liabilities 18. What is cash basis 26. What is a cost of goods sold
+ Equity. accounting? (COGS)?

10. What is the double-entry Answer: Cash basis accounting Answer: COGS is the direct
accounting system? recognizes revenues and costs of producing goods sold
expenses only when cash is by a company, including
Answer: The double-entry materials and labor.
received or paid.
accounting system is a method
where every transaction affects 19. What is the matching 27. What is the difference
at least two accounts, with one principle? between fixed and variable
debit and one credit entry, costs?
Answer: The matching principle
ensuring the accounting
states that expenses should be Answer: Fixed costs do not
equation remains balanced.
recorded in the same period as change with the level of
11. What is a debit? the revenues they help production or sales, while
generate. variable costs fluctuate with
Answer: A debit is an entry on production volume.
the left side of an account that 20. What is the revenue
represents an increase in recognition principle? 28. What is an auditor?
assets or expenses, or a
Answer: The revenue Answer: An auditor is a
decrease in liabilities, equity, or
recognition principle dictates professional who examines
revenue.
that revenue should be financial statements and
12. What is a credit? recognized when it is earned, records to ensure accuracy and
not when cash is received. compliance with accounting
Answer: A credit is an entry on standards.
the right side of an account that 21. What are accounts
represents an increase in receivable? 29. What is the purpose of
liabilities, equity, or revenue, or internal controls?
Answer: Internal controls are Answer: Goodwill is an 45. What is a financial ratio?
processes designed to ensure intangible asset that represents
Answer: A financial ratio is a
the accuracy and reliability of the excess of the purchase
relationship between two
financial reporting, compliance price over the fair value of an
financial figures, used to
with laws, and the efficiency of acquired company's identifiable
analyze a company’s financial
operations. assets and liabilities.
performance, such as the
30. What is a budget? 38. What is the purpose of current ratio or return on equity.
financial reporting?
Answer: A budget is a financial 46. What is the difference
plan that estimates income and Answer: The purpose of between a sole proprietorship
expenses over a period of time. financial reporting is to provide and a corporation?
accurate and useful financial
31. What is working capital? Answer: A sole proprietorship is
information to stakeholders,
a business owned by one
Answer: Working capital is the such as investors, creditors,
person, while a corporation is a
difference between a and regulators.
separate legal entity owned by
company's current assets and
39. What are retained shareholders.
current liabilities, indicating its
earnings?
ability to pay short-term 47. What is a partnership?
obligations. Answer: Retained earnings are
Answer: A partnership is a
the accumulated net income of
32. What is an expense? business owned by two or more
a business that has not been
individuals who share profits,
Answer: An expense is the cost distributed to shareholders as
losses, and responsibilities.
incurred by a business in order dividends.
to generate revenue, such as 48. What is a financial year?
40. What is a dividend?
rent, salaries, or utilities.
Answer: A financial year is a
Answer: A dividend is a portion
33. What is a capital 12-month period used for
of a company's profits paid to
expenditure? accounting purposes, which
shareholders, typically in cash
may or may not align with the
Answer: Capital expenditure or additional shares.
calendar year.
(CapEx) is money spent by a
41. What is a stock split?
business to acquire or upgrade 49. What is a capital gain?
physical assets, such as Answer: A stock split is when a
Answer: A capital gain is the
property, equipment, or company issues more shares to
profit made from selling an
buildings. its existing shareholders,
asset, such as stock or real
increasing the number of
34. What is a current asset? estate, for more than its
shares while reducing the share
purchase price.
Answer: A current asset is an price.
asset that is expected to be 50. What is the purpose of
42. What is the purpose of the
converted into cash or used up auditing?
trial balance?
within one year, such as cash,
Answer: The purpose of
accounts receivable, or Answer: The purpose of the trial
auditing is to independently
inventory. balance is to ensure that total
verify the accuracy and integrity
debits equal total credits,
35. What is a non-current of a company’s financial
serving as a check for the
asset? statements, ensuring
accuracy of accounting records.
compliance with accounting
Answer: A non-current asset is
43. What is the chart of standards and regulations.
an asset that is not expected to
accounts?
be converted into cash or used
up within one year, such as Answer: The chart of accounts
property, plant, and equipment. is a list of all accounts used by
an organization in its general Sole proprietorship-Department
36. What is a contingent
ledger, categorized by assets, of Trade and Industry (DTI)
liability?
liabilities, equity, revenue, and
Answer: A contingent liability is expenses.
a potential liability that may Partnership & Corporation-
44. What is the matching
arise depending on the Securities and Exchange
principle?
outcome of a future event, such Commission (SEC)
as a pending lawsuit. Answer: The matching principle
states that expenses should be
37. What is goodwill?
matched with the revenues they Cooperatives-Cooperative
generate within the same Development Authority (CDA)
accounting period.
₱1 – Jose Rizal ·
₱5 – Andres Bonifacio ·
₱10 – Apolinario Mabini
₱20 Bill-Manuel L. Quezon
₱50-Sergio Osmena
₱100-Manuel Roxas
₱200-Diosdado Macapagal.
₱500-Benigno Ninoy S. Aquino
Jr. and his wife Corazon C.
Aquino
₱1000-Three Philippine
Patriots, Chief justice Jose
Abad Santos, Gen. Vicente Lim
and Josefa Llanes Escoda.