Balance Sheets

Which of these does a balance sheet show

• How much gross profit a business made
• Its total revenue
• What a business owns and owes
• How much it paid in rent

What period of time does a balance sheet cover?

• One quarter
• One moment in time
• One year
• One tax year

Which of these is a liability?

• Cash in bank
• Money owed to other business (creditors)
• Stock
• Machinery

Which of these is an asset?

• A loan to buy a van
• A satisfied customer
• Any stock (Inventory) that you have
• Reduced rent

A bank loan is normally a

• long term liability
• a current liability
• a fixed asset
• a current asset

A balance sheet has four sections:  1)heading 2)assets 3) liabilities and 4)

• credits
• debits
• owner's equity

On a balance sheet, if total assets are $15,000 and Total Liabilities are $10,000.  Owner's Equity will equal:

• 5,000
• 25,000
• 7,500I

If Liabilities are more than the Assets, the Business's financial condition is not strong.

• True
• False

Negative Net Worth is defined as:

• Assets and liabilities are the same amount

• Assets are less that liabilities

• Liabilities are less that assets

• Assets are greater than liabilities

Zero net worth is defined as:

• Assets are greater than liabilities

• Assets are less than liabilities

• Assets are equal to liabilities

• None of the above