GROUP 8

1. Which of the following is NOT a type of asset

• A. Cash
• B. Inventory
• C. Liabilities
• D. Real Estate

2. What is the purpose of a balance sheet?

• A. To show how much money a company has made
• B. To track a company's cash flow
• C. To demonstrate organizational values
• D. To analyze a company's investment strategy

3. Which financial statement provides a detailed analysis of what happened to a company's cash over a given period of time?

• A. Income Statement
• B. Balance Sheet
• C. Cash Flow Statement
• D. Statement of Retained Earnings

4. What is the balance sheet equation?

• a. Assets = Liabilities + Owners’ Equity
• b. Equity = Assets - Liabilities
• c. Revenue = Expenses - Assets
• d. Liabilities = Assets + Owners’ Equity

5. What is the purpose of the financing section on a cash flow statement?

• a. To show cash inflows from daily operations
• b. To show cash movements from acquiring and selling investments
• c. To display cash movements from loans, debt, or equity financing
• d. To list assets and liabilities

6. What is the difference between a current asset and a fixed asset?

• a. Current assets are tangible, while fixed assets are intangible.
• b. Current assets are used in operations, while fixed assets are used for investment.
• c. Current assets can be easily converted to cash within a year, while fixed assets cannot.
• d. Current assets are liabilities, while fixed assets are equity.

7. What does shareholders' equity on a balance sheet?

• a. The total amount of money a company owes to its creditors.
• b. The residual interest in the assets of a company after deducting liabilities.
• c. The market value of a company's stock.
• d. The total amount of cash a company has.

8. Which of these is the most liquid asset?

• a. Inventory
• b. Accounts receivable
• c. Cash
• d. Property, plant, and equipment