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4 cards from this section. Quick, good the night before a test.
What are the three main components of a Balance Sheet?
Think about what the business owns and owes.
Define Owner's Equity.
It's what's left for the owner after paying off what the business owes.
What does a Balance Sheet represent?
Remember what it shows about the business.
True or False: Owner's equity increases when a business incurs a loss.
Think about how profits affect owner's equity.
If a company has total assets of $1,250,000 and total liabilities of $750,000, what is the owner's equity? Further, explain how this owner's equity could change if the company takes a new loan.
Remember the accounting equation and how changes affect it.
Create a hypothetical Balance Sheet for a small business with the following information: Assets ($200,000), Liabilities ($120,000), and explain how changing the values of Assets or Liabilities will impact Owner’s Equity.
Refer back to the accounting equation for your explanations.
6 more questions in this section. Enroll free to practise them all.
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