Balance Sheet
Which user studies a balance sheet to determine if the company will provide a good rate of return
investor
Items of value are listed under which of the following components of the balance sheet
Assets
Which of the following is the accounting equation
Assets = Liabilities + Owners' Equity
The balance sheet is sometimes called the
statement of financial position.
A balance sheet shows
how much money a company owes.
A business's managers often study a series of past balance sheets to
identify and analyze financial trends within the company.
Which of the following is an example of a short-term liability
Accounts payable
Which of the following is an example of an asset
Cash
Which of the following is an example of a current asset
Checking Account
Which of the following is a true statement regarding fixed assets
They take longer than a year to convert into cash.
When a fixed asset depreciates, it
decreases in value on the balance sheet.
The portion of a business's value that belongs to its owners or stockholders is known as
equity.
The balance sheet has a close relationship with the company's
income statement.
All of a business's assets come from two sources—borrowing and/or
investment.
Owners' equity may also be called
net worth