WorksheetsFinancial Statements Review
Total questions: 25
Worksheet time: 13mins
Which one is right?
Asset = Owner's equity + Liability
Asset = Owner's equity - Liability
Asset + Owner's equity = Liability
Asset + Owner's equity = expense
Mr.W has current assets of $500 and total assets of $1500. ABC has current liabilities of $300 and total liabilities of $800. What is the amount of ABC's owner's equity
200
700
900
800
An obligation to pay for something in a short term is called:
Current Liability
Asset
Fixed Liability
Owners Equity
Debts and financial obligations (responsibilities).
Liabilities
Assets
Net Loss
Property
accounts payable
Which of the following are Assets? Select all that apply.
Bank Account
Bank Loan
Vehicles
Bank overdraft
Furniture and fittings
Select all that are liabilities.
Accounts Payable
Stock / inventory
Mortgage
Accounts Payable
When the business is owed money it is called
Accounts Receivable
Account Payable
_______ is a financial statement that reports a business's assets, liabilities, and capital on a specific date
Balance Sheet
Statement of Cash Flow
Income Statement
Profit and Loss Statement
Which of the following is not a liability
Inventory
Car loan
Mortgage
Credit card balance
Which correctly shows a list of assets and liabilities?
Assets: mortgage, car loan, land
Liabilities: retirement savings, cash, credit card loans
Assets: building, cash in hand, accounts receivable
Liabilities: loans, accounts payable, mortgage
Assets: creditors, prepaid expenses, loans
Liabilities: stocks, accounts receivable, car
None of the above
Depreciation is not included on the income statement
True
False
What is the purpose of an income statement?
calculate the bank balance
calculate net assets
calculate sales
calculate net profit
COGS stands for
cost of goods sales
cost of goods serviced
cost of goods sold
When expenses are greater than income?
expense
net loss
net income
net gain
Depreciation is an
Asset
Loss
Expense
Liability
Under straight line method if the cost of asset is 45000 and scrap value is 5000 anduseful life is 10 year, then the amount of depreciation will be:
4500
4000
5000
2000
What is depreciation?
An increase in the value of an asset over time
Loss of value of an asset over time
Assets that can quickly be turned into cash.
Depreciation can decrease other expense accounts like:
insurance
mortgages
car loans
taxes
