AGBU 2389 CAPSTONE FINAL REVIEW
2026 COMPLETE QUESTIONS ELITE PASS
⩥ balance sheet. Answer: A financial statement that reports assets,
liabilities, and owner's equity on a specific date.
⩥ asset. Answer: anything of value owned
⩥ liability. Answer: any debt or financial obligation
⩥ owner equity. Answer: an estimate of net worth
⩥ owner's equity can also be called.... Answer: equity or net worth
⩥ true or false: everything on the balance sheet can be off-balance.
Answer: false, everything must balance
⩥ assets =. Answer: liabilities + owner equity
⩥ owner equity =. Answer: assets - liabilities
,⩥ when can a balance sheet be completed?. Answer: any time during an
accounting period
⩥ when are most balance sheet's prepared?. Answer: towards the end of
the accounting period
- allows one balance sheet to be used for the end of one period and the
start of the next period
⩥ how is financial position of a business measured?. Answer: 2
concepts: solvency and liquidity
⩥ is solvency short term or long term?. Answer: long term
⩥ solvency. Answer: measurable the liabilities of a business relative to
the amount of owner equity invested
⩥ what does solvency indicate about a business?. Answer: if all debts
can be paid if the business is sold
⩥ what does it mean if assets are not greater than liabilities?. Answer:
the business is insolvent = bankruptcy
⩥ is liquidity short term or long term?. Answer: short term
, ⩥ liquidity. Answer: the ease with which an asset can be converted into
cash
⩥ what does liquidity measure?. Answer: the ability to meet financial
obligations when they come due without disrupting the flow of business
⩥ why is liquidity short term?. Answer: cash requirements and sources
of cash are generally measured only over the next accounting period
⩥ how are balance sheets formatted?. Answer: - assets are shown on the
left side of the top
- liabilities are placed to the right or below assets
⩥ what needs to be on the heading of a balance sheet?. Answer: the
name of the business, Balance Sheet, and a date (not a range)
⩥ what are the two types of assets?. Answer: 1st or 2nd
⩥ 1st Asset. Answer: assets that can be sold to generate cash
⩥ 2nd Asset. Answer: assets used to produce other goods that in turn can
be sold for cash in the future
2026 COMPLETE QUESTIONS ELITE PASS
⩥ balance sheet. Answer: A financial statement that reports assets,
liabilities, and owner's equity on a specific date.
⩥ asset. Answer: anything of value owned
⩥ liability. Answer: any debt or financial obligation
⩥ owner equity. Answer: an estimate of net worth
⩥ owner's equity can also be called.... Answer: equity or net worth
⩥ true or false: everything on the balance sheet can be off-balance.
Answer: false, everything must balance
⩥ assets =. Answer: liabilities + owner equity
⩥ owner equity =. Answer: assets - liabilities
,⩥ when can a balance sheet be completed?. Answer: any time during an
accounting period
⩥ when are most balance sheet's prepared?. Answer: towards the end of
the accounting period
- allows one balance sheet to be used for the end of one period and the
start of the next period
⩥ how is financial position of a business measured?. Answer: 2
concepts: solvency and liquidity
⩥ is solvency short term or long term?. Answer: long term
⩥ solvency. Answer: measurable the liabilities of a business relative to
the amount of owner equity invested
⩥ what does solvency indicate about a business?. Answer: if all debts
can be paid if the business is sold
⩥ what does it mean if assets are not greater than liabilities?. Answer:
the business is insolvent = bankruptcy
⩥ is liquidity short term or long term?. Answer: short term
, ⩥ liquidity. Answer: the ease with which an asset can be converted into
cash
⩥ what does liquidity measure?. Answer: the ability to meet financial
obligations when they come due without disrupting the flow of business
⩥ why is liquidity short term?. Answer: cash requirements and sources
of cash are generally measured only over the next accounting period
⩥ how are balance sheets formatted?. Answer: - assets are shown on the
left side of the top
- liabilities are placed to the right or below assets
⩥ what needs to be on the heading of a balance sheet?. Answer: the
name of the business, Balance Sheet, and a date (not a range)
⩥ what are the two types of assets?. Answer: 1st or 2nd
⩥ 1st Asset. Answer: assets that can be sold to generate cash
⩥ 2nd Asset. Answer: assets used to produce other goods that in turn can
be sold for cash in the future
