Balance Sheets

Trade creditors are (two answers needed)

• People the business owes money to

• People that owe the business money

• Current assets

• Creditor .... due within 1 year (current liability)

Select the item which is a fixed asset

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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

Which of the following is an example of an asset:

• Taxes

• Accounts payable

• Cash

• Wages and salaries

Define Depreciation

• The difference between the total assets and total liabilities of an individual.

• The loss of value of an asset over time.

What is the formula for net worth?

• Assets - Liabilites= Net worth

• Assets + Liabilities + debt= Net worth

• Assets+ Liabilities= Net Worth

Property owned by an individual

• Liability

• Asset

• Property

• Net Worth

Examples of Liabilities include which of the following:

• Loans, credit cards, and real property

• Loans, mortgage, and credit cards

• Loans, Art collection, and savings account

• Mortgage, credit card, and real property

The balance sheet heading will specify which of the following?

• A POINT in time

• A PERIOD of time

Which one of the following are financial institutions?

• bank and credit union

• library and hospital

• school and museum

• Starbucks and Wal-Mart