TC 41 Company Law and Balance Sheets Quiz

The balance sheet has two halves that always balance.

• True

• False

One half of the balance sheet shows the company’s liabilities and assets.

• True

• False

Assets represent things owned by the company that will bring future economic benefits.

• True

• False

Liabilities are obligations to pay other organizations or people.

• True

• False

Shareholders' equity is also referred to as liabilities.

• True

• False

Loans and future pension payments are examples of liabilities.

• True

• False

Suppliers provide raw materials or parts .

• True

• False

Granting credit means allowing a buyer a period of time before they have to pay for goods.

• True

• False

The total of assets must equal the total of liabilities plus capital.

• True

• False

The equation for the balance sheet is A = L + C.

• True

• False