Financial Statements Quiz

A balance sheet shows the financial ................. that a company has at a point in time and where they come from.

• records

• resources

• returns

• revenues

An accountant does not record financial transactions involving a company's investors or shareholders in a trading profit and loss account because those ................. are not revenues or expenses.

• money

• cash

• payments

• repayments

The ................. of accounts is a listing of the accounts that are reflected in the financial statements.

• book

• chart

• table

• outline

Assets are divided into three categories: Current Assets, Fixed Assets, and ................. Assets.

• current fixed

• different

• fixed current

• other

Assets are often listed in the order of their ................. - which means how easy it would be to convert each asset into cash.

• complexity

• liquidity

• security

• simplicity

If the assets of a company are greater than its liabilities, then the equity of the business is the positive ................. between the two numbers.

• calculation

• difference

• dividend

• sum

Liabilities are ................. or others stemming from goods or services received by the company.

• obligation

• debts

• outstanding

• owed

The income statement is an essential part of the financial statements that a/an ................. releases.

• manager

• organization

• investor

• government

When the company borrows money from its bank, the company's assets increase and the company's ................. increase.

• depreciation

• value

• income

• liabilities

If the company runs a radio advertisement and agrees to pay later, the company will incur a/an .................. that will reduce owner's equity and has increased its liabilities.

• agreement

• negotiation

• expense

• revenue