Balance Sheet Quiz

Which of the following is an example of an asset on a balance sheet?

• Cash

• Revenue

• Accounts Payable

• Inventory

Which of the following is a liability on a balance sheet?

• Property, plant, and equipment

• Inventory

• Accounts payable

• Accounts receivable

What is the formula for calculating equity on a balance sheet?

• Equity = Assets * Liabilities

• Equity = Assets + Liabilities

• Equity = Assets / Liabilities

• Equity = Assets - Liabilities

Which of the following is an example of a current asset?

• Cash

• Property, Plant, and Equipment

• Accounts Payable

• Inventory

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

• Utility bill

• Mortgage loan

• Car loan

• Credit card debt

What is the main purpose of a balance sheet?

• To track a company's sales and revenue

• To determine a company's employee satisfaction

• To provide a snapshot of a company's financial position

• To analyze a company's marketing strategies

Which of the following is an example of a current liability?

• Goodwill

• Property, plant, and equipment

• Accounts payable

• Inventory

What does the equity section of a balance sheet represent?

• Expenses incurred by a company

• Revenue generated by a company

• Debt obligations of a company

• Ownership interest in a company

What is the formula for calculating liabilities on a balance sheet?

• Liabilities = Assets + Equity

• Liabilities = Assets - Equity

• Liabilities = Assets / Equity

• Liabilities = Assets * Equity

Which of the following is an example of a non-current asset?

• Inventory

• Accounts receivable

• Property, plant, and equipment

• Cash