Balance Sheet

Balance Sheet Test

1. Why do we need a balance sheet?
to apply for a business loan
it is needed in our business plan
to show the net income each month
both answers 1 and 2

2. A balance sheet shows?
income for the fiscal period
shows what is owned, what is invested and what is owed
both answers 1 and two
revenue for the period

3. On a balance sheet, the first line contains?
the words balance sheet
the date
the company name
stockholders' equity

4. Bromley's Formal Wear carries an inventory of?
wedding gowns
all of the above

5. The bank will not loan money to a company unless?
it is already in operation
they see that the owners have a vested interest
there no liabilities
they know that the company will only hire good employees

6. How much money seed money was invested in the business?

7. Items such as display cases, inventory, computers and filing cabinets are considered?
stockholders' equity

8. Where can you find prices of assets needed for your business?
all of the above

9. Display cases, clothing racks are assets. What account name should be used to classify them?
furniture and fixtures
accounts payable
stockholders' equity
all of the above

10. If our bank loan is for $150,000 and the term of the loan is for 10 years and the interest rate is 12%, what is the monthly cost?

11. The account name for the amount of money borrowed from the bank is classified as a ______ on the balance sheet?
account payable
note payable

12. The The accounting equation states?
assets = liabilities - stockholders' equity
assets = liabilities + stockholders' equity
liabilities = revenue - expenses
none of the above

13. If assets = $235,800 and liabilities = $150,800, what is the value of common stock?

14. If liabilities equal $200,000 and common stock equals $300,00, what is the value of the assets?

15. If the total assets equal $100,000, what should the stockholders' equity plus liabilities be?
none of the above

Chapter Accounting Test

First Name
Last Name