Understanding Balance Sheets

Which of the following best describes a balance sheet?

• A. A statement that shows the company’s revenues and expenses.

• B. A summary of a company’s assets, liabilities, and owner’s equity at a specific point in time.

• C. A record of cash inflows and outflows over a period.

• D. A document showing only a company’s liabilities and expenses.

What information should be included in the title of the balance sheet?

• A. The name of the business, type of statement, and the date.

• B. Only the name of the business.

• C. The financial performance over the period.

• D. The names of the accountant and business owner.

In which column should the total of Non-Current Assets be recorded?

• A. Detail Column

• B. First Column

• C. Second Column

• D. Third Column

In which column should the working capital value be recorded, in the balance sheet?

• A. Detail Column

• B. First Column

• C. Second Column

• D. Third Column

In which column should the values for Current Assets and Current Liabilities be recorded?

• A. Detail Column

• B. First Column

• C. Second Column

• D. Third Column