U2L5b BW Intro to Bus

Which one is right?

• Asset = Owner's equity + Liability

• Asset = Owner's equity - Liability

• Asset + Owner's equity = Liability

• Asset + Owner's equity = expense

... are what a company owes.

• assets

• liabilities

• equities

• profits

What is a balance sheet?

• A financial statement

• An annual overview

• A bank slip

• All of these

Define Accounting

• the process of recording, analyzing, and interpreting the economic activities of a business

• A method of recording all transactions for a business in a specific format

• bills for goods and services either bought by or sold to the business

• A financial statement that shows the financial position of a business on a single, specific date.

A balance sheet has four sections: 1) heading 2) assets 3) liabilities and 4) ___________

• Debits

• Income Statement

• Owner’s Equity

• Credits

 How are Assets organized within their respective column?

• Most to least liquid

• At random

• Least to most liquid

• Greatest to least price

 Which of these does a balance sheet show?

• How much gross profit a business made

• Its total revenue

• How much it paid in rent

• What a business owns and owes