The Balance Sheet - Lesson Objective 1

A single owner in a business is called a __________ __________.

• Sole Proprietor

• Partnership Owner

• Corporate Shareholder

• Joint Owner

In a partnership, how is the business investment made?

• By a single owner

• By each partner

• By stockholders

• By the government

What is the term used for the owner's investment in a business?

• Liability

• Asset

• Capital

• Revenue

What is the formula for calculating the worth (capital) of a business? This is also known as The Balance Sheet formula:

• A = L + O/E

• A = L - O/E

• A = L x O/E

• A = L / O/E

What does the balance sheet heading include?

• Name of the company, name of the report, and the date of the report

• Only the name of the company

• Only the date of the report

• Name of the company and the owner's name

What is the definition of liabilities?

• Assets of the company

• Debts or obligations of the company

• Revenue of the company

• Equity of the company

What is the total of current and long-term assets called?

• Total Liabilities

• Total Assets

• Total Revenue

• Total Expenses

What is Accounts Payable?

• The amount of unpaid salaries

• Your current bills entered into accounting software

• The total obligations the company must pay within 1 year

• The amount due on your building loan

What is Mortgage Note Payable?

• The amount due on your building loan

• The total obligations the company must pay within 1 year

• The amount of unpaid salaries

• The total of stock plus retained earnings

From your notes, what is the total of plant and equipment for Mool Company on their balance sheet?

• $61,000

• $144,000

• $205,000

• $92,000