Finance: Ch.3 L.2 Vocabulary Review

Which financial document provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time?

• Cash-flow statement

• Income statement

• Balance sheet

• Financial statement

The difference between the total assets and total liabilities of an individual or company is known as:

• Fair market value

• Net worth

• Net income

• Expenses

Which of the following is NOT typically included in a financial statement?

• Balance sheet

• Income statement

• Cash-flow statement

• Fair market value report

What term describes the economic resources owned by a company that are expected to provide future benefits?

• Liabilities

• Expenses

• Net income

• Assets

The financial document that shows how much money is flowing in and out of a business over a specific period is called:

• Net worth statement

• Balance sheet

• Cash-flow statement

• Income statement

Which term represents the amount by which a company's revenues exceed its expenses during a specific period?

• Net loss

• Net worth

Debts, obligations, or any money that a company owes to external parties are known as:

• Assets

• Expenses

• Liabilities

• Net worth

The costs associated with running a business, such as rent, salaries, and utilities, are classified as:

• Liabilities

• Assets

• Net income

• Expenses

When a company's expenses exceed its revenues over a specific period, the result is called:

• Net income

• Net worth

• Net loss

• Fair market value

The estimated price at which an asset would change hands in a transaction between a willing buyer and seller is known as:

• Net worth

• Fair market value

• Net income

• Balance sheet value