The Balance Sheet

Question 1

Used to show the balance of assets to liabilities + owners’ equity

Answer 1

Double-underline:

Question 2

Usually has a larger value than supplies and is re-used many times. It is expected to have a long life.

Answer 2

Equipment

Question 3

The assets, liabilities and equity for a person or a business at a particular point in time.

Answer 3

Financial position

Question 4

The cost of an asset when it was acquired

Answer 4

Historical cost

Question 5

When an asset can be sold quickly and retains its value it is liquid. Cash is the most liquid asset.

Answer 5

Liquidity

Question 6

This is also a formal borrowing arrangement but is usually given for the purchase of a specific property or piece of equipment. Mortgages generally last for a long-time – 25 years or so.

Answer 6

Mortgage

Question 7

We place asset accounts in the order of their closeness to cash (liquidity).

Answer 7

Order of assets

Question 8

We place liability accounts in the order of their maturity

Answer 8

Order of liabilities:

Question 9

Owners’ equity , what the owners have invested into the business, for example. The term also applies to an individual.

Answer 9

Net worth:

Question 10

The cash-on-hand at the workplace available for very small daily transactions.

Answer 10

Petty cash:

Question 11

The cost of buildings and land owned.

Answer 11

Property

Question 12

The balance sheet is a snapshot of the financial position of an individual or business as at a particular date, and we label it as such.

Answer 12

Snapshot concept:

Question 13

Assets which are stored and then used as needed. They are never expected to last very long.

Answer 13

Supplies: