Review questions of Week 4

_____ include cash and other assets that are expected to be converted to cash within a year.

• Fixed assets

• Non-current assets

• Current liabilities

• Current assets

The term _____ refers to a financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time.

• income statement

• balance sheet

• statement of changes in equity

• statement of cash flows

_____ is the money generated from normal business operations, calculated as the average sales price times the number of units sold.

• Net income

• Revenue

• Gain

• Income

An intangible asset is an asset that is not physical in nature. Which of the followings does not belong to intangible assets?

• patents

• trademarks

• copyrights

• inventory

Equity is the ____ interest in the assets that remains after deducting its liabilities.

_____ principle requires every company and organization where there is any public interest then such business organizations should disclose all the material or necessary information in the notes to the financial statements.

• Relevance

• Full disclosure

• Objectivity

• Conservatism