Quiz balance sheet

What does "Assets" refer to in a balance sheet?

• A) What a company owes

• B) What a company owns

• C) What a company earns

• D) What a company pays

Which term refers to the financial obligations of a company?

• A) Assets

• B) Liabilities

• C) Equity

• D) Revenue

The term "Equity" in a balance sheet refers to:

• A) The money invested by owners

• B) The company's debts

• C) The revenue from sales

• D) The operational expenses

What is the meaning of "Current Liabilities"?

• A) Debts due in the next 12 months

• B) Debts due after 12 months

• C) The total assets owned by the company

• D) Shareholder investments

Which term refers to money owed to creditors?

• A) Revenue

• B) Accounts Payable

• C) Retained Earnings

• D) Net Profit

Net Worth" in the context of a balance sheet means:

• A) Total liabilities minus total assets

• B) Total assets minus total liabilities

• C) Total revenue minus costs

• C) Total revenue minus costs

Long-Term Debt" refers to:

• A) Debts payable within one year

• B) Debts payable in more than one year

• C) Operating costs

• D) Revenue from sales

What is the meaning of "Retained Earnings"?

• A) Earnings distributed as dividends

• B) Profits retained within the company for reinvestment

• C) Earnings paid to employees

• D) The total income of the company

What does the term "Depreciation" refer to in a balance sheet?

• A) The increase in asset value

• B)The earnings of the company

• C) The total value of assets

• D) The decrease in the value of an asset over time

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

• A) Cash

• B) Accounts Receivable

• C) Property, Plant, and Equipment

• D) Inventory