Assets
Liabilities
Stockholders' Equity
Formatting
Related
100
Where are assets found on the balance sheet?
First, right after the heading
100
Liabilities are found where on the balance sheet?
The second section, which is Liabilities & Stockholders' Equity. AKA, the middle.
100
Stockholders' Equity is found where on the balance sheet?
In the second section, Liabilities & Stockholders' Equity. AKA last.
100
What is one of the proper date formats for the balance sheet?
As of, At, or simply the date.
100
What is the accounting equation?
Assets = Liabilities + Stockholders' Equity
200
Give an example of a current asset
Cash, Accounts Receivable, Inventory, Supplies, Prepaid Expenses
200
Give an example of a current liability
Accounts Payable, Accrued Expenses, Unearned Revenue, Current Portion of Long-Term Debt, Interest Payable
200
This account represents owners' investment in the company?
Common Stock
200
What two numbers on the balance sheet are double underlined?
Total Assets, Total Liabilities & Equity
200
How is the current ratio calculated?
Current Assets/Current Liabilities
300
Define assets.
Something owned by the company and will have future benefit.
300
Define liability.
Something that is owed to some one else and is satisfied by cash or services.
300
This account represents the company's investment in itself.
Retained Earnings
300
What are the three components in the heading of the balance sheet?
Company Name Statement Name Date in Proper Format
300
Cash on the balance sheet should tie to what?
Cash on the Statement of Cash Flows
400
What is the definition of the current asset?
One that is used up or turned to cash within 1 year.
400
What is the one long-term liability that we typically see?
Notes Payable
400
Why would a company retain its earnings?
To reinvest in the company. To grow.
400
Where should dollar signs be placed on the balance sheet?
At the top and bottom of each of the two sections.
400
How is retained earnings calculated?
Beginning Retained Earnings +Net Income -Dividends =Ending Retained Earnings
500
What is the difference between accounts receivable and notes receivable?
Accounts receivable is when customers owe you money, and notes receivable is a formal loan to another party.
500
What is the definition of a current liability?
One that is paid off or satisfied within 1 year.
500
What is the sister account to Common Stock?
Additional Paid In Capital
500
When should a single underline be used?
Right before a calculation is done OR after a list of items.
500
If a company's current ratio is 6, what does that mean?
They have 6 times more current assets to pay their current liabilities.
M
e
n
u