The Balance Sheet

What is Owner's Equity?

• items of value that a company owns

•  obligations of one company to another

• total value of a company or an individual

• the initial investment in the business as well as any retained earnings which are reinvested in the business

Current Assets are cash or other assets that are expected to be converted to cash within a year

• True

• False

A Liability is

• Something of value that a company owns

• liquid items that can be easily converted into cash

• A debt or financial obligation

If Shareholder's Equity is $300 and Assets are $1500, the Liabilities are:

• $1800

• $1200

• $300

• $1500

In a balance sheet, Cash is listed as

• shareholder's equity

• liabilities

• current assets

• long term assets

In a balance sheet, Bank Loans are categorized as

• assets

• liabilities

• owners equity

• none of the above

Plant and machinery are classified as _______ on the balance sheet:

• current assets

• fixed assets

• current liabilities

• non current liabilities

What is accounts receivable?

• • all short-term obligations owed to creditors

• a resource that a business does not plan to sell within a year
• cash or assets that can be converted into cash in less than a year
• money owed to the business for purchases made by customers

Which of the following is a long-term liability?

• Bank Accounts

• Accounts Payable

• Mortgage

• Equipment

Fixed assets can be converted to cash quickly:

• True
• False