T-level finance Balance sheet

Which of the following is an example of a current asset?

• Buildings

• Accounts Receivable

• Equipment

• Investments expected to be held for more than a year

Liabilities are divided into which two categories?

• Current and Non-current

• Tangible and Intangible

• Short-term and Equity

• Cash and Non-cash

Which of the following best represents shareholders' equity?

• Profits reinvested in the business

• Loans owed by the company

• Salaries payable

• Accounts receivable

What does the accounting equation for the Statement of Financial Position state?

• Assets = Liabilities - Shareholders' Equity

• Assets = Liabilities + Shareholders' Equity

• Liabilities = Assets - Shareholders' Equity

• Liabilities = Shareholders' Equity - Assets

What type of asset is inventory categorized as?

• Non-current Asset

• Intangible Asset

• Current Asset

• Fixed Asset

The Statement of Financial Position provides information about a company's financial health at a specific point in time.

• True

• False

Retained earnings are a type of liability.

• True

• False

Current liabilities are debts that are due within one year.

• True

• False

Non-current assets are expected to be converted into cash within one year.

• True

• False

The balance sheet is also referred to as the Statement of Financial Position.

• True

• False