15 Questions
Which form of business entity allows for the most number of owners?
Corporation
In which form of business entity are the owners not liable for business debts?
Corporation
Which form of business entity has the owners' profits taxable to the owner?
Sole Proprietorship
Which form of business entity limits the liability of the owner?
LLC
In which form of business entity are the owners liable for business debts?
Sole Proprietorship
What is another name for the balance sheet?
Statement of financial position
How is the accounting equation expressed?
Assets = Liabilities + Stockholders’ Equity
In which form is the balance sheet presented in side-by-side format?
Account form
What does the balance sheet show?
Financial condition as of a specific date
Where are assets, liabilities, and stockholders’ equity typically positioned in the report form of the balance sheet?
Assets at top, liabilities and stockholders’ equity at bottom
What is another name for the balance sheet?
Statement of financial position
How is the accounting equation expressed?
Assets = Liabilities + Stockholders’ Equity
In which form is the balance sheet typically presented in the U.S.?
Report form (assets at top and liabilities and stockholders’ equity at bottom)
What does the balance sheet show?
Financial condition as of a specific date
What is the main purpose of the balance sheet?
To show what a company owns and owes
Test your knowledge of financial statements and reporting with this quiz. Explore topics such as balance sheets, income statements, and cash flow statements to gain a better understanding of financial reporting in business.
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