MSBC Lesson 3

What is the best definition of a Financial Statement?

• Written records that display the financial performance of a company

• Stock price

• Name of a company

• Cash flow statement

Which of these is not an asset?

• Car

• Accounts Payable

• Cash

• Building

What is a liability?

• What the company owes

• What the company owns

What is the big equaiton

• Assets = Liabilities + Equity

• Liabilities + Assets = Equity

• Equity + Assets = Equity

• Assets + Equity + Liablities = 30

If I have 4000 in expenses and 5500 in revenue, what is my profit?

• 1650

• 1500

• -1500

• 2000

What is the difference between a balance sheet and an income statement?

• Balance sheet shows assets and liabilites and equity, and income statement shows net income

• Balance sheet shows net income, while income statement shows assets and liabilites and equity

• Balance sheet shows dividends of a stock and its price, while income statement shows the stock value

• None of these answers

What is the calculation of Gross profit?

• Assets - liabilites = Gross Profit

• Revenue - expenses = Gross Profit

• Revenue - Cost of Revenue = Gross Profit

• Income - Expenses = Gross Profit

Anything of value that is owned by the company (such as cash, accounts receivables, vehicles, etc.) are reported on the balance sheet and are referred to as _______________.

• assets
• liabilities
• profit
• income

Any amounts owed by a business and reported on the balance sheet are referred to as ________________.

• assets
• liabilities
• profit
• expenses

Bonus: What did Facebook change their name to?

• Metaverse

• Bookface

• Meta

• Instabook