Chapter 24: Balance Sheets

Which of these does a balance sheet show

• How much gross profit a business made
• Its total revenue
• What a business owns and owes
• How much it paid in rent

What period of time does a balance sheet cover?

• One quarter
• One moment in time
• One year
• One tax year

Which of these might appear on a balance sheet?

• Cost of sales
• Cash flow forecast
• Staff salaries
• Creditors

Which of these is a liability?

• Cash in bank
• Money owed to other business (creditors)
• Stock
• Machinery

Current liabilities are Long term

• True
• False

Which of these is an asset?

• A loan to buy a van
• A satisfied customer
• Any stock (Inventory) that you have
• Reduced rent

Fixed assets can be converted to cash really quickly

• True
• False

A bank loan is normally a

• long term liability
• a current liability
• a fixed asset
• a current asset

Which of these does not appear on a balance sheet?

• A loan to the bank
• Machinery you own
• Any cash in your bank
• The breakeven point

The Accounting Equation is: Assets = Capital - Liabilities

• True
• False