What formula must a balance sheet follow?

0 Assets = Shareholders + Equity

1 Assets = Liabilities + Shareholders Equity

0 Liabilities = Assets + Shareholders Equity

What is an asset?

0 A balance sheet item

1 Something that generates cash flow

Is accounts payable an asset or a liability?

1 a Liability

0 an Asset

What are accounts receivable?

0 A company has made a purchase but has yet to pay for it.

1 A company has made a sale but has yet to receive money for it.

What is on the left of the balance sheet?

1 Assets

0 Liabilities

What's on the right of the balance sheet?

0 Assets

1 Liabilities

What is the purpose of the balance sheet?

0 It's an income statement.

0 It's a cash flow tracker.

1 Gives a companies financial position for a single moment in time.

You get 4 points. The maximun a 7