FI-093 Posttest
Which of the following is an example of a current asset:
Checking account
The footnotes section of the balance sheet may contain
information about accounting policies.
Owner's equity may also be called
net worth.
Which user studies a balance sheet to determine if the company will provide a good rate of return?
Investor
Which of the following is a true statement regarding a company's book value as listed on the balance sheet:
It is not the same thing as fair market value.
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 + Owner's Equity
The balance sheet is sometimes called the
statement of financial position.
Which of the following is a true statement regarding fixed assets:
They take longer than a year to convert into cash.
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 liability:
Accounts payable
Which of the following is an example of a short-term liability:
Accounts payable
Which user studies a balance sheet to determine a company's creditworthiness?
Bank
Which of the following is an example of an asset:
Cash
Which of the following is an example of a long-term liability:
Mortgage
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.
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.