Financial statements: Balance sheet vs Income statement

What do assets on a balance sheet represent?

• Ownership

• Liabilities

• Expenses

• Employee's income

How are assets categorized on a balance sheet?

• Into revenue and expenses

• Into liabilities and equity

• Into current and non-current assets

• Into cash and inventory

What are examples of current assets?

• Long-term debts

• Patents, trademarks

• Cash, inventory, accounts receivable

• Property, plant, equipment

What is the total assets line on a balance sheet?

• The total expenses

• The sum of current and non-current assets

• The sum of current and non-current liabilities

• The total revenue

What do liabilities represent on a balance sheet?

• Short term expenses incurred by the company

• Income generated by the company

• What the company owes

• Assets owned by the company

What are examples of current liabilities?

• Accounts payable, due within a year

• Cash, inventory

• Marketing expenses, administrative costs

• Accounts payable, long-term debts

How is shareholders' equity calculated?

• By dividing assets by liabilities

• By subtracting assets from liabilities

• By substracting liabilities from currents assets

• By subtracting liabilities from assets

What does EBITDA stand for?

• Earnings Before Interest, Taxes, Depreciation, and Amortization

• Expenses Beyond Income, Taxes, Depreciation, and Amortization

• Earnings Before Interest, Taxes, Dividends, and Amortization

• Expenses Beyond Income, Taxes, Dividends, and Amortization

What is included in the Cost of Goods Sold (COGS)?

• Marketing expenses

• Direct costs of selling products/services

• Interest expenses

• Indirect costs of running the business

What is Operating Income?

• Non-cash expenses spreading the cost of capital assets

• Industry-specific costs beyond common categories

• Interest expense separate from income

• Profit from regular business operations