What does a balance sheet show.docx

What does a balance sheet show? - a\) Company's profits and losses - b\) Company's assets and liabilities - c\) Company's revenue - d\) Company's marketing expenses 1. Which of the following is an example of an asset? - a\) Loan - b\) Cash - c\) Mortgage - d...

What does a balance sheet show? - a\) Company's profits and losses - b\) Company's assets and liabilities - c\) Company's revenue - d\) Company's marketing expenses 1. Which of the following is an example of an asset? - a\) Loan - b\) Cash - c\) Mortgage - d\) Salary 2. What is an example of a liability? - a\) Inventory - b\) Accounts payable - c\) Equipment - d\) Patents 3. Why are financial statements important? - a\) They help in cooking food - b\) They help understand a company's financial health - c\) They are used to decorate offices - d\) They are used to play games 4. Which of the following would you find in the income statement? - a\) Cash balance - b\) Total sales revenue - c\) List of employees - d\) Company\'s mission statement 5. What does a company use to pay off its debts? - a\) Assets - b\) Liabilities - c\) Equity - d\) Revenue 6. Which is considered a current asset? - a\) Building - b\) Cash - c\) Land - d\) Factory machinery 7. What is the main role of a financial statement? - a\) To plan company events - b\) To report the company's financial performance - c\) To organize meetings - d\) To schedule employees\' work shifts 8. What is the purpose of an annual report? - a\) To review the company\'s yearly performance - b\) To set daily goals - c\) To plan monthly budgets - d\) To design new products 9. Which of the following is found in the statement of financial position? - a\) Revenue - b\) Expenses - c\) Assets and liabilities - d\) Employee salaries **Pre-Quiz Answers** 1. **b) Company's assets and liabilities** 2. **b) Cash** 3. **b) Accounts payable** 4. **b) They help understand a company's financial health** 5. **b) Total sales revenue** 6. **a) Assets** 7. **b) Cash** 8. **b) To report the company's financial performance** 9. **a) To review the company\'s yearly performance** 10. **c) Assets and liabilities**