The accounting equation is

• Assets = Liabilities + Owners' Equity

• Liabilities = Assets - Owners' Equity

• Owners' Equity = Assets - Liabilities

• All of the above

Which of the following is NOT a current asset?

• Cash

• Inventory

• Building

• Accounts Receivable

Which of the following is NOT a current liability?

• Credit card

• Cash

• Accounts Payable

• Overdraft

Which financial statement contains the information to calculate the current ratio (current assets / current liabilities)?

• Balance Sheet

• Income statement

• Cash Flow Statement

• Profit and Loss Statement

Which financial statement contains information to calculate the gearing ratio (total liabilities / total equity)?

• Income Statement

• Cash Flow Statement

• Balance Sheet

• Profit and Loss Statement

Which financial objective does the current ratio measure?

• Solvency

• Profitability

• Liquidity

• Growth

Which financial objective does the gearing ratio measure?

• Liquidity

• Efficiency

• Solvency

• Profitability

Which of the following can be found on the Income Statement?

• Current assets

• Cash inflows

• COGS

• Retained profit

COGS =

• Opening Stock +Closing stock - Purchases

• Opening Stock + Purchases - Closing Stock

Net Profit = Gross Profit - Expenses

• True

• False