Module 4 Quiz of Understanding Financial Statements Company Position

Equity can also be thought of as what?

What are the people that contributed capital to the company in exchange for some share of ownership in the company called?

What is the portion of a company’s earnings that is retained by the company and not distributed to the company’s owners called?

Which are ways that retained earnings would decrease?

Additional paid in capital (APIC) and common stock are listed as separate line items on the balance sheet. True or false?

The difference between resources the company earns and the resources it disperses during a period is what?

Where is net income dumped at the end of each period?

A company’s net worth can be thought of in two parts: (1) the value that owners contributed to the company, and (2) the accumulation of what the company has earned since it began doing business. True or false?

Who receives payment when a company issues dividends?

Assets minus liabilities equals what?

What refers to how quickly an asset will be converted to cash?

In the asset section of the balance sheet, on what basis is the order of assets listed?

Which financial statement could also be called the statement of financial position?

What does a company’s liabilities + owner’s equity equal?

Financial statements are a representation of a company’s position and performance. True or false?

Which is NOT an asset?

If an asset is not a current asset, it is a non-current asset. True or false?

The three sections of the balance sheet are: assets, liabilities, and net income. True or false?

Which financial statement is a snapshot of the company on a particular date?

The balance sheet answers the measurement questions of, what do you own? and, what do you owe? True or false?