Income Statement & Balance Sheet

Prepaid Expenses are assets (goods or services) that are paid in advance such as

• Cars

• Land

• Subscriptions, rent, Insurance

• Trucks

All income that a business receives over a period of time

• Financial Statement

• Revenue

• Expenses

• Net Income (Loss)

The costs of operating a business

• Financial Statement

• Revenue

• Expenses

• Net Income (Loss)

When expenses exceed revenues, it is referred to as

• Net Income

• Profit

• Net Loss or Simply Loss

• None of the choices

The debts that are OWED by a business

• Assets

• Liabilities

• Equity

• None of the choices

When identifying expenses on an income statement, expenses will end in the word:

• Revenue

• Expense

• Expense Type

• Expansion

The accounting equation is the following:

• Assets = Liabilities + Equity

• Assets = Liabilities/Equity

• Assets = Liabilities x Equity

• Assets = Liabilities - Equity

Money that a business OWES to its creditors or suppliers once goods or services have been delivered, but not yet paid. It is also a liability.

• Accounts Receivable

• Accounts Payable

• Assets

• Liabilities

Financial Statement that categorizes and lists each of the assets, liabilities, and equity accounts.

• Financial Statement

• Income Statement

• Balance Sheet

• Fitted Sheet

The resources that a business OWNS

• Assets

• Liabilities

• Equity

• None of the choices