What formula must a balance sheet follow?
0 Assets = Shareholders + Equity
1 Assets = Liabilities + Shareholders Equity
0 Liabilities = Assets + Shareholders Equity
What is an asset?
0 A balance sheet item
1 Something that generates cash flow
Is accounts payable an asset or a liability?
1 a Liability
0 an Asset
What are accounts receivable?
0 A company has made a purchase but has yet to pay for it.
1 A company has made a sale but has yet to receive money for it.
What is on the left of the balance sheet?
1 Assets
0 Liabilities
What's on the right of the balance sheet?
0 Assets
1 Liabilities
What is the purpose of the balance sheet?
0 It's an income statement.
0 It's a cash flow tracker.
1 Gives a companies financial position for a single moment in time.
You get 5 points. The maximun are 7 poits
3