Balance Sheet

Question 1

Includes all of the expenses that a business has incurred but has not yet paid. This account is recorded as a liability on the Balance Sheet as it is a debt owed by the company.

Answer 1

Accounts Payable

Question 2

Includes all of the revenue (sales) that a company has provided but has not yet collected payment on. This account is on the Balance sheet, recorded as an asset that will likely convert to cash in the short-term.

Answer 2

Accounts Receivable

Question 3

An expense that has been incurred but hasn’t been paid is described by the term…

Answer 3

Accrued Expense

Question 4

Anything the company owns that has monetary value. These are listed in order of liquidity, from cash (the most liquid) to land (least liquid).

Answer 4

Asset

Question 5

A financial statement that reports on all of the company’s assets, liabilities, and equity. Abides by the equation
Assets = liabilities + Equity

Answer 5

Balance Sheet

Question 6

As an asset is depreciated, it loses value. This shows the original values of an Asset, less any accumulated Depreciation.

Answer 6

Book Value

Question 7

This denotes the value left over after liabilities have been removed.
Assets - liabilities= ?
The portion of the company that is owned by the investors and owners.

Answer 7

Equity

Question 8

The term used to classify the assets that a company has purchased to sell to its customers that remain unsold. As these items are sold to customers, the …. account will lower.

Answer 8

Inventory

Question 9

All debts that a company has yet to pay are referred to as…. Common ones include Accounts Payable, Payroll, and Loans.

Answer 9

Liability