Introduction to the Balance Sheet

Which one is not a liability?

• Mobile Phone Bill

• Bank Loan

• Bank Balance

• money owed for goods

Property owned by a business is called____

• Liability

• Asset

• Property

• Net Worth

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

• True

• False

Non current liability are financial obligations that are due for settlement within 1 year. True or False

• True

• False

Which one is correct?

• Asset = Owner's equity + Liability

• Asset = Owner's equity - Liability

• Asset + Owner's equity = Liability

• Asset + Owner's equity = expense

What are liabilities?

• Money that the business has in stock

• Money owed by the business to banks or suppliers

• The amount of money owed to shareholders

Which of the following consist of only assets?

• Car, Bank Loan, Computer

• Creditor, Debtors, Cash at Bank

• Debtors. Cash at bank, Building

• Cash in hand, cash at bank, creditors

Select the item which is a fixed asset

• 
• 

Select the item which is not a component of a balance sheet.

• Fixed Assets

• Current Assets

• Current Liabilities

• Expenses

Which item would represent a liability in a business?

• 
•