Front

Equity is the same as:

Back

Net worth.

Front

Jerry’s Repairs, Inc. has $200,000 total assets and $100,000 total liabilities. What amount should be entered on the net worth line of the net worth statement?

Back

$100,000

Front

Net worth is:

Back

Total assets minus total liabilities.

Front

The Big Green Tractor Repair Center has $250,000.00 total assets and $200,000.00 total liabilities. On which line of the financial statement should $50,000.00 be entered?

Back

Net worth.

Front

Debts that a business owes are:

Back

Liabilities.

Front

Something of value that a person or business owns is:

Back

An asset.

Front

If a welding shop owner has $10,000 cash on hand and $25,000 in a checking account, on which line of a financial statement should $35,000 be entered?

Back

Current assets.

Front

The loss in value of buildings and machinery due to age, use, or change in market demands is:

Back

Depreciation.

Front

On a financial statement, net worth is:

Back

Total assets minus total liabilities.

Front

On a financial statement, items that can be quickly converted to cash or that will be sold within 12 months are:

Back

Current assets.