Financial Statement Trivia Questions

1. This financial statement provides a summary for revenue and expenses during the

accounting period. This statement is used to figure gross profit.

2. You save up $10,000 to start your own business. You then purchase inventory at

$15,000. Based on this information what are the Total Liabilities for the business?

3. Anything of value such as: cash, inventory, prepaid expenses, or accounts receivable

4. The systematic process of recording and reporting the financial position of a person or

an organization. It is often called the language of business.

5. Your sister buys guitars online, fixes them up, and sells them online. You are helping her

determine her current assets. Her net receivables are $3,500, cash is $5,200, inventory

is $12,000, and other current assets are $2,000. What is the Total Current Assets?

6. The amount of money contributed by the owners and any retained earnings or losses.

7. A person who maintains and reviews business record.

8. Anything of value that is owned or controlled

9. You have an assignment to look at the Balance Sheet for your favorite corporation. Your

partner printed it off and lost the 2nd sheet with the Total Equity. Part of the assignment

is to write out the accounting equation. You're not worried since page 1 included the

Total Assets and Total Liabilities. Total Assets are $86,000,000 and Total Liabilities are

$12,000,000. What is the Total Equity?

10. A company's financial obligation to pay for things such as: accounts payable, taxes

payable, and debt.

11. The set of accounting rules used by accountants to prepare reports.

12. The unit of measure for property and financial claims

13. This financial statement reports assets, liabilities, and owner's equity during the

accounting period. It can be used to determine the liquidity of a business.

14. You are looking at a balance sheet: Total Liabilities are $400,000 and Total Equity is

$20,000. Someone spilled coffee on the Total Assets! What should this number be?