Balance Sheet Made Simple

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| By Mr.t
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Mr.t
Community Contributor
Quizzes Created: 1 | Total Attempts: 356
| Attempts: 357
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  • 1/5 Questions

    What is an asset?

    • A possession with monitary value
    • A liability
    • A debt
    • Apossession without monitary value
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About This Quiz

This quiz simplifies the concept of a balance sheet by explaining key terms like assets, liabilities, capital, cash, and stock.

Accounting Quizzes & Trivia

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  • 2. 

    What is a liability

    • A possession

    • A debt

    • A picture

    • A motorcar

    Correct Answer
    A. A debt
    Explanation
    A liability refers to a debt that an individual or entity owes to another party. It represents an obligation to repay or settle a financial claim or obligation. This can include loans, mortgages, credit card debt, or any other form of outstanding financial obligation. Therefore, the correct answer is "a debt".

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  • 3. 

    Money used to start a business is called ?

    Correct Answer
    Capital
    Explanation
    The money used to start a business is called capital. Capital refers to the financial resources or investment put into a business to generate income or profit. It can be in the form of cash, equipment, property, or other assets. Capital is essential for covering initial expenses, purchasing assets, and sustaining the business until it becomes profitable.

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  • 4. 

    Another name for money is ?

    Correct Answer
    Cash
    Explanation
    Cash is another term used to refer to money. It is the physical form of currency, such as banknotes and coins, that can be used to make purchases or transactions. Cash is widely accepted and recognized as a medium of exchange in most economies. It provides individuals with a tangible means of conducting financial transactions and is commonly used for everyday expenses.

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  • 5. 

    Goods bought for resale is called?

    • Cash

    • Loan

    • Stock

    • A liability

    Correct Answer
    A. Stock
    Explanation
    Goods bought for resale are referred to as stock. Stock refers to the inventory or merchandise that a business holds for the purpose of selling it to customers. It includes both finished goods that are ready for sale and raw materials or components that are used in the production process. Stock is considered as an asset on the balance sheet of a business as it represents the value of the goods that can be sold to generate revenue.

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Quiz Review Timeline (Updated): Mar 18, 2022 +

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  • Current Version
  • Mar 18, 2022
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 01, 2009
    Quiz Created by
    Mr.t
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