Liabilities

Question 1

What do total assets on a balance sheet refer to for a business ?

Answer 1

What a business Owns

Question 2

What do total liabilities and share holders equity on a balance sheet mean for a business ?

Answer 2

What a business Owes

Question 3

What are two types of liabilities ?

Answer 3

Current ones

LT ones

Question 4

What is money owed by a company to its creditors.

Answer 4

Accounts Payable (AP)

Question 5

What two kinds of Owners equity are there ?

Answer 5

Preferred

Common

Question 6

What does a preferred owners equity entail ?

Answer 6

A defined Dividend
No Voting Rights
Cant force the company to do anything

Question 7

What does the common owners equity entail ?

Answer 7

Voting Rights

Dividends

Question 8

What is the nominal value of a bond, share of stock, or a coupon as indicated in writing on the document or specified by charter.

Answer 8

Par Value

Question 9

What happens when the company is moving in the right direction for the owners

Answer 9

Owners Equity is increasing

Question 10

What happens when the operation is not generating retained earnings?

Answer 10

Owners Equity is increasing from capital infusion