Balance Sheet Made Simple

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| By Mr.t

Mr.t

Community Contributor

Quizzes Created: 1 | Total Attempts: 355

| Attempts: 355

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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1
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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Balance Sheet Made Simple

What is an asset?

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What is a liability

Money used to start a business is called ?

Another name for money is ?

Goods bought for resale is called?