Balance sheet - JSS3 Business studies Past Questions and Answers - page 1
What is the purpose of a balance sheet?
To calculate profits
To assess a company's financial position at a specific point in time
To record daily transactions
To determine market share
Which of the following is classified as a liability?
Equipment
Accounts receivable
Accounts payable
Inventory
What are assets?
Debts owed by the company
Resources owned or controlled by the company that can provide future economic benefits
Amount invested by shareholders
Profits earned by the company
Which of the following is an example of a current asset?
Property
Equipment
Accounts receivable
Long-term investments
What does equity represent?
Resources owned or controlled by the company
Obligations owed by the company
Owners' stake in the company
Debts owed to external parties
What is the total liabilities and equity in the given balance sheet?
₦103,000
₦75,000
₦50,000
₦53,000
Which of the following is an example of a non-current liability? a
Accounts payable
Short-term loans
Long-term loans
Accrued expenses
What does the balance sheet provide a snapshot of?
Future financial projections
Past financial performance
Current financial position
Market trends
Which section of the balance sheet lists obligations due within one year?
Current assets
Non-current assets
Current liabilities
Non-current liabilities
What does retained earnings represent?
Investments made by shareholders
Accumulated profits not distributed as dividends
Debts owed by the company
Assets owned by the company