Balance Sheet: Meaning/Definition - SS1 Accounting Past Questions and Answers - page 1
What does a balance sheet show?
A company's financial position at a specific point in time
A company's revenue over a specific period of time
A company's expenses over a specific period of time
A company's cash flows over a specific period of time
What are the three main components of a balance sheet?
Assets, liabilities, and income
Assets, liabilities, and equity
Liabilities, income, and equity
Assets, income, and equity
What are assets on a balance sheet?
What the company owns or controls
What the company owes to others
The residual interest in the assets of the company after liabilities are deducted
The company's revenue over a specific period of time
What are liabilities on a balance sheet?
What the company owns or controls
What the company owes to others
The residual interest in the assets of the company after liabilities are deducted
The company's revenue over a specific period of time
What does the term "balance" refer to in a balance sheet?
The need to balance assets and liabilities
The need to balance revenue and expenses
The need to balance equity and income
The need to balance assets and equity
What is the purpose of a balance sheet?
What is the difference between assets and liabilities on a balance sheet?