Question 1

The income statement and balance sheet provide different, yet ____________________ types of information.

Accepted Answer

Question 2

The balance sheet provides information that helps internal and external users evaluate a business' ability to achieve its primary goals of earning a satisfactory profit and remaining _____________.

Accepted Answer

solvent

Question 3

The accounting equation is assets = ____________________ + owner's equity.

Accepted Answer

liabilities

Question 4

The balance sheet is an accounting report that summarises a business' financial________________ on a given date.

Accepted Answer

The answer of The balance sheet is an accounting report...

Question 5

A ____________________ balance sheet shows subtotals for assets, liabilities and owner's equity in related groupings.

Accepted Answer

The answer of A ____________________ balance sheet shows subtotals for...

Question 6

____________________ are a business' economic resources that it expects will provide future benefits to the business.

Accepted Answer

The answer of ____________________ are a business' economic resources that...

Question 7

___________ _________ are cash and other assets that the business expects to convert to cash, sell, or use up within one year.

Accepted Answer

The answer of ___________ _________ are cash and other assets...

Question 8

__________ __________ is the total amount of depreciation expense recorded over the life of an asset to date.

Accepted Answer

The answer of __________ __________ is the total amount of...

Question 9

____________ are assets that do not have a physical substance but the ownership of which entitles the business to future economic benefits.

Accepted Answer

The answer of ____________ are assets that do not have...

Question 10

____________________ are the economic obligations (debts) of a business.

Accepted Answer

The answer of ____________________ are the economic obligations (debts) of...

Question 11

____________________ are the external parties to whom the business owes economic obligations.

Accepted Answer

The answer of ____________________ are the external parties to whom...

Question 12

____________________ are obligations that the business expects to pay within one year by using current assets.

Accepted Answer

The answer of ____________________ are obligations that the business expects...

Question 13

Accounts payable, salaries payable, unearned revenues, and short-term notes payable are all examples of ______________ _______________.

Accepted Answer

The answer of Accounts payable, salaries payable, unearned revenues, and...

Question 14

__________ __________ are amounts owed to suppliers.

Accepted Answer

The answer of __________ __________ are amounts owed to suppliers....

Question 15

Owner's equity is the owner's current ____________________ in the assets of the business.

Accepted Answer

The answer of Owner's equity is the owner's current ____________________...

Question 16

Managers are concerned with the business' balance sheet because it is used to evaluate their own ____________________.

Accepted Answer

The answer of Managers are concerned with the business' balance...

Question 17

As a general rule, the _______________ the inventory turnover, the more efficient the business is in its purchasing and sales activities.

Accepted Answer

The answer of As a general rule, the _______________ the...

Question 18

The ____________ __________________ ______________ measures how efficiently a business collects cash from its credit customers.

Accepted Answer

The answer of The ____________ __________________ ______________ measures how efficiently...

Question 19

The balance sheet doesn't always show each asset's ____________ value.

Accepted Answer

The answer of The balance sheet doesn't always show each...

Question 20

The balance sheet presents a business' financial position on a specific date such as '30 June 2019'.

Accepted Answer

The balance sheet is a financial statement that shows a company's financial position at a specific point in time, typically at the end of a fiscal quarter or year, such as '30 June 2019'.

Quiz 8: The Balance Sheet: Content, Use and Analysis