Assets, Liabilities & Equity

Asset or liability?

CASH

• Asset

• Liability

• Neither

Which of the following is NOT found in an income statement?

• Revenue

• Net Profit

• Prepaid Expenses

• Income Tax Expense

Asset or liability?

ACCOUNTS RECEIVABLE

• Asset

• Liability

• Neither

Monica Geller has assets of $120,000 and liabilities of $65,000. What is her equity (net worth)?

• $165,000

• $120,000

• $65,000

• $55,000

Asset or liability?

LAND

• Asset

• Liability

• Neither

What is the equation to calculate Net Profit?

• Gross Profit - Expenses

• Revenue - Cost of Goods Sold

• Cost of Goods Sold + Expenses

• Revenue - Expenses

Asset or liability?

ACCOUNTS PAYABLE

• Asset

• Liability

• Neither

Asset or liability?

REVENUE

• Asset

• Liability

• Neither

Asset or liability?

LAST WEEK'S LABOUR COSTS

• Asset

• Liability

• Neither

What is the equation to calculate Gross Profit?

• Revenue - Expenses = Gross Profit

• Revenue - Cost of Goods Sold = Gross Profit

• Expenses - Revenue = Gross Profit

• Revenue - Net Profit = Gross Profit