THE RIGHT BALANCE - BUSSHART ENTREPRENEURSHIP CLASS

A balance sheets shows

• Where a company spends its money.

• How much money a company owes.

• A company’s current stock price.

• The salaries of individual employees.

The balance sheet is sometimes called the

• statement of retained earnings.

• income statement.

• cash-flow statement.

• statement of financial position.

Which of the following is the accounting equation:

• Owners’ Equity = Assets x Liabilities

• Assets = Liabilities – Owners’ Equity

• Assets = Liabilities + Owners’ Equity

• Liabilities = Owners’ Equity + Assets

The portion of a business’s value that belongs to its owners or stockholders is known as

• accounts receivable.

• income.

• equity.

• liability.

Owners’ equity may also be called

• cash.

• net worth.

• fair market value.

• profit.

Which of the following is an example of a long-term liability:

• TaxesWages/

• Salaries

• Mortgage

• Accounts payable

Which of the following is an example of a short-term liability:

• Accounts payable

• Accounts receivable

• Bank loan

• Mortgage

Which of the following is an example of a liability:

• Copyrights

• Cash

• Stocks and bonds

• Accounts payable

When a fixed asset depreciates, it

• becomes a current asset.

• decreases in value on the balance sheet.

• becomes a liability.

• is no longer usable.

Which of the following is an example of an asset:

• Taxes

• Accounts payable

• Cash

• Wages and salaries