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