The Accounting Equation

What is another name for a non-current liability?

• Short-term liability

• Current liability

• Long-term liability

• Contingent liability

What is Owner's Equity?

• The total value of a company's assets before liabilities are deducted.

• The value returned to owners if all assets are liquidated and debts paid off.

• The amount of money a company has in its bank accounts.

• The total revenue generated by a company in a fiscal year.

What is an asset?

• A resource that is expected to provide a future benefit to its owner.

• A liability that incurs future costs.

• A type of investment that guarantees returns.

• A physical item that has no monetary value.

What is a liability?

• Something that is owed to somebody else.

• A type of asset that increases in value.

• A financial obligation that can be ignored.

• A legal document for property ownership.

Where are business assets reported?

• On the business's income statement.

• In the business's cash flow statement.

• On the business's balance sheet.

• In the business's statement of retained earnings.

Can you give examples of assets?

• Cash at bank, inventories, and motor vehicles

• Liabilities, expenses, and dividends

• Revenue, equity, and interest

• Sales, marketing, and research

What is another name for a current liability?

• Long-term liability

• Short-term liability

• Contingent liability

• Fixed liability