Net Worth Statement Quiz

Cash and things that are owned by the individual or the business for which a financial statement is prepared are listed as:

• Assets
• Debts
• Equity
• Working capital

Mortgages that are not due this year are entered on a financial statement as:

• Current assets
• Non-current liabilities
• Non-current assets
•  Current liabilities

On a financial statement, net worth is:

• Current assets minus current liabilities
• Current liabilities plus current assets
• Total assets plus total liabilities.
• Total assets minus total liabilities

The part of a net worth statement that shows all debts is:

• Inventory
• Total liabilities 
• Debt-to-equity ratio
• Current liabilties

On a financial statement, items that can be quickly converted to cash or that will be sold within 12 months are:

• Net worth
• Equity
• Current liabilities
• Current assets

If a plant farm has total assets of $500,000 and total liabilities of $300,000, what number is the correct entry on the net worth line of a financial statement?

• 200000
• 300000
• 500000
• 800000

If a nursery owner has a $250,000 mortgage on his land and he owes Farm Credit Service $30,000 for this year’s payment, what amount should be entered on the non-current liability line of the financial statement?

• 30,000
• 220,000
• 250,000
• 280,000

On a net worth statement, net worth is the same as:

• Total liabilities
• Inventory
•  Equity
• Current assets

If a business has $10,000 cash on hand, $25,000 in a checking account and land valued at $300,000, on which line of a financial statement should the $335,000 total be entered?

• Total assets
• Net worth
• Current assets
• Total liabilities

If a florist’s financial statement shows total liabilities of $300,000 and a net worth of $100,000, the debt-to-equity ratio is:

• 4:1
• 3:1
• 2:1
• 1:1