INTRODUCTION TO BUSINESS ACCOUNTING - D774
SECTION 2 LESSON 1 QUESTIONS WITH VERIFIED
ACCURATE ANSWERS
The balance sheet is often called - Answers - the fundamental financial statement.
accounting equation - Answers - Assets = Liabilities + Owner's Equity
the liabilities are what is - Answers - owed
the owners' equity shows - Answers - what the owners' interests in the business are.
Investors and creditors use the __ ___ to evaluate a company's liquidity position(Will the
company be able to pay its obligations in the short term?) and its solvency position (Is
the company's debt structure such that it can survive in the long term?) - Answers -
balance sheet
What is the accounting equation, and what are its elements? - Answers - The
accounting equation shows what a company owns and how what it owns was
financed—through either debt or equity.
The accounting equation is Assets = Liabilities + Owners' Equity.
Assets are economic resources that are - Answers - owned or controlled by a company.
Cash (assets) - Answers - Coins, currency, checking accounts. the amount in a
company's bank account is cash.
Accounts receivable (assets) - Answers -
Inventory (assets) - Answers -
Land, Buildings, and Equipment (assets) - Answers -
A company summarizes and aggregates each class of assets on the balance sheet by -
Answers - assigning it a dollar amount
A balance sheet would not be very useful with the following asset listing: - Answers -
one bank account, two warehouses full of goods, three trucks, and four customers who
owe money.
Assets (and liabilities) are usually listed on a balance sheet in order of their - Answers -
Liquidity
, Liquidity - Answers - how quickly and easily an asset can be converted to cash
liquidity assets that can reasonably be converted - Answers - into cash in one year are
referred to as current assets
Assets that are not expected to be converted - Answers - within a year are referred to
as non-current or long-term assets
Long-term assets - Answers - Assets that are illiquid and that are needed to operate a
business over an extended period of time.
Classified Balance Sheet - Answers - balance sheet that distinguishes between current
and long-term assets
Comparative balance sheet - Answers - a balance sheet that includes information for
both the current year and preceding year(s) that are prepared for users to identify any
significant changes in particular items
Comparative balance sheet allows - Answers - users to identify any significant changes
in particular items from year to year
What is a classified balance sheet? - Answers - A classified balance sheet distinguishes
between current and long-term assets and current and long-term liabilities.
What is a comparative balance sheet? - Answers - A comparative balance sheet
includes information for both the current year and one or more preceding years allowing
users to identify any significant changes in particular items from year to year.
Liabilities are obligations to pay - Answers - cash, transfer other assets, or provide
services to someone else.
Your personal liabilities might include - Answers - unpaid phone bills, the remaining
balance on an automobile loan, or an obligation to complete work for which you have
already been paid.
Accounts Payable (liability) - Answers -
Taxes Payable (Liability) - Answers -
Mortgage Payable (Liability) - Answers -
Unearned Revenue (Liability) - Answers -
Like assets, liabilities must be measured in - Answers - monetary amounts (dollars in
the United States).
SECTION 2 LESSON 1 QUESTIONS WITH VERIFIED
ACCURATE ANSWERS
The balance sheet is often called - Answers - the fundamental financial statement.
accounting equation - Answers - Assets = Liabilities + Owner's Equity
the liabilities are what is - Answers - owed
the owners' equity shows - Answers - what the owners' interests in the business are.
Investors and creditors use the __ ___ to evaluate a company's liquidity position(Will the
company be able to pay its obligations in the short term?) and its solvency position (Is
the company's debt structure such that it can survive in the long term?) - Answers -
balance sheet
What is the accounting equation, and what are its elements? - Answers - The
accounting equation shows what a company owns and how what it owns was
financed—through either debt or equity.
The accounting equation is Assets = Liabilities + Owners' Equity.
Assets are economic resources that are - Answers - owned or controlled by a company.
Cash (assets) - Answers - Coins, currency, checking accounts. the amount in a
company's bank account is cash.
Accounts receivable (assets) - Answers -
Inventory (assets) - Answers -
Land, Buildings, and Equipment (assets) - Answers -
A company summarizes and aggregates each class of assets on the balance sheet by -
Answers - assigning it a dollar amount
A balance sheet would not be very useful with the following asset listing: - Answers -
one bank account, two warehouses full of goods, three trucks, and four customers who
owe money.
Assets (and liabilities) are usually listed on a balance sheet in order of their - Answers -
Liquidity
, Liquidity - Answers - how quickly and easily an asset can be converted to cash
liquidity assets that can reasonably be converted - Answers - into cash in one year are
referred to as current assets
Assets that are not expected to be converted - Answers - within a year are referred to
as non-current or long-term assets
Long-term assets - Answers - Assets that are illiquid and that are needed to operate a
business over an extended period of time.
Classified Balance Sheet - Answers - balance sheet that distinguishes between current
and long-term assets
Comparative balance sheet - Answers - a balance sheet that includes information for
both the current year and preceding year(s) that are prepared for users to identify any
significant changes in particular items
Comparative balance sheet allows - Answers - users to identify any significant changes
in particular items from year to year
What is a classified balance sheet? - Answers - A classified balance sheet distinguishes
between current and long-term assets and current and long-term liabilities.
What is a comparative balance sheet? - Answers - A comparative balance sheet
includes information for both the current year and one or more preceding years allowing
users to identify any significant changes in particular items from year to year.
Liabilities are obligations to pay - Answers - cash, transfer other assets, or provide
services to someone else.
Your personal liabilities might include - Answers - unpaid phone bills, the remaining
balance on an automobile loan, or an obligation to complete work for which you have
already been paid.
Accounts Payable (liability) - Answers -
Taxes Payable (Liability) - Answers -
Mortgage Payable (Liability) - Answers -
Unearned Revenue (Liability) - Answers -
Like assets, liabilities must be measured in - Answers - monetary amounts (dollars in
the United States).
