Balance Sheet Quiz

Which of these does a balance sheet show?

• How much gross profit a business made

• Its total revenue

• What a business owns and owes

• How much it paid in rent

What period of time does a balance sheet cover?

• One quarter

• One moment in time

• One year

• One tax year

Which of these might appear on a balance sheet?

• Cost of sales

• Cash flow forecast

• Staff salaries

• Creditors

Which of these is a liability?

• Cash in bank

• Money owed to other business (creditors)

• Stock

• Machinery

Current liabilities are Long term

• True

• False

Which of these is an asset?

• A loan to buy a van

• A satisfied customer

• Any stock (Inventory) that you have

• Reduced rent

Fixed assets can be converted to cash really quickly

• True

• False

A bank loan is normally a

• long term liability

• a current liability

• a fixed asset

• a current asset

The Accounting Equation is: Assets = Capital - Liabilities

• True

• False

Working Capital is:

• Assets - Liabilities

• Current Assets - Current Liabilities

• Fixed Assets - Long-term Liabilities

• None of the above