Balance Sheet Quiz

Which of the following is a non-current asset?

• Cash

• Accounts Receivable

• Equipment

• Inventory

Which of the following is considered a current liability?

• Long-term debt

• Accounts Payable

• Property, Plant, and Equipment

• Retained Earnings

Which of the following would be classified under equity on a balance sheet?

• Accounts Payable

• Common Stock

• Notes Payable

• Prepaid Expenses

What happens when a company purchases inventory using cash?

• Assets decrease, liabilities increase

• Assets increase, liabilities increase

Fill in the blank: The balance sheet is a financial statement that provides a snapshot of a company's ______ at a specific point in time.

• income

• cash flow

• financial position

• expenses

What does the debt-to-equity ratio measure?

• The amount of revenue earned compared to debt

• The proportion of a company’s debt to its equity

• The amount of profit a company generates

• The amount of assets financed by liabilities

Which of the following represents the portion of equity that is generated from retained earnings?

• Common Stock

• Additional Paid-in Capital

• Retained Earnings

• Treasury Stock

Retained earnings are part of a company's ____.

• Debt

• Equity

• Revenue

• Expenses

Assets increase, equity ____.

• Decreases

• Increases

• Remains the same

• Fluctuates

If a company’s debt increases while equity remains the same, the debt-to-equity ratio will ____.

• Increase

• Decrease

• Remain the same

• Be unpredictable