About Balance Sheet

Following are some of the multiple choice questions on the Balance Sheet with answers that will help the students in developing their knowledge.

Balance Sheet MCQ

1. Assets are expected to last and to be used by the business for a long time are called_____________________.

  • Assets
  • Current Assets
  • Non-current Assets
  • Capital

2. Things of value eg. copyrights, knowledge etc.

  • income
  • intangible assets
  • fixed assets
  • inventory

3. Which of these does a balance sheet show

  • How much gross profit a business made
  • Its total revenue
  • What a business owns and owes
  • How much it paid in rent

4. What period of time does a balance sheet cover?

  • One quarter
  • One moment in time
  • One year
  • One tax year

5. Which of these might appear on a balance sheet?

  • Cost of sales
  • Cash flow forecast
  • Staff salaries
  • Creditors

6. Which of these is a liability?

  • Cash in bank
  • Money owed to other business (creditors)
  • Stock
  • Machinery

7. Current liabilities are Long term

  • True
  • False

8. Which of these is an asset?

  • A loan to buy a van
  • A satisfied customer
  • Any stock (Inventory) that you have
  • Reduced rent

9. Fixed assets can be converted to cash really quickly

  • True
  • False

10. A bank loan is normally a

  • long term liability
  • a current liability
  • a fixed asset
  • a current asset

11. Which of these does not appear on a balance sheet?

  • A loan to the bank
  • Machinery you own
  • Any cash in your bank
  • The breakeven point

12. The Accounting Equation is: Assets = Capital - Liabilities

  • True
  • False

13. Examine the picture and select the value for Total Assets

  • 300,000
  • 800,000
  • 2,000,000
  • 2,500,000

14. Examine the picture and select the value for Net Assets

  • 300,000
  • 800,000
  • 2,000,000
  • 2,500,000

15. Examine the picture and select the value for Working Capital

  • 300,000
  • 800,000
  • 2,000,000
  • 2,500,000

16. Examine the picture and select the value for the funds available to shareholders

  • 1,200,000
  • 1,400,000
  • 200,000
  • 2,500,000

17. What is balance sheet?

  • A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.
  • A Balance sheet is one of a company's core financial sheet that shows their profit and lossProfit and Loss

18. Which one is not belongs to liability?

  • Mobile Phone Bill
  • Bank Loan
  • Bank Balance
  • Owed To Friends

19. Property owned by an individual

  • Liability
  • Asset
  • Property
  • Net Worth

20. The value of all assets minus the value of all liabilities.

  • Financial obligations
  • Assets
  • Net Worth
  • Property

21. Debts and financial obligations (responsibilities).

  • Liabilities
  • Assets
  • Negative Net Worth
  • Property

22. Examples of Liabilities include which of the following:

  • Loans, credit cards, and real property
  • Loans, mortgage, and credit cards
  • Loans, Art collection, and savings account
  • Mortgage, credit card, and real property

23. Positive Net Worth is defined as:

  • assets are less that liabilities
  • liabilities are greater than assets
  • assets are equal to liabilities
  • assets are greater than liabilities

24. Negative Net Worth is defined as:

  • Assets and liabilities are the same amount
  • Assets are less that liabilities
  • Liabilities are less that assets
  • Assets are greater than liabilities

25. Examples of assets include:

  • Real Property, Car, and credit cards
  • Car, Jewelry, and Checking account
  • Art collection, Jewelry, and unpaid taxes
  • Real Property, Car loan, Jewelry

26. Zero net worth is defined as:

  • Assets are greater than liabilities
  • Assets are less than liabilities
  • Assets are equal to liabilities
  • None of the above

27. What is another name for Statement of Financial Position?

  • Income Statement
  • Trading and Profit and Loss Account
  • Balance Sheet
  • None of the Above

28. Which accounts are needed to prepare the Statement of Financial Position?

  • Income Statement
  • Trial Balance
  • Balance Sheet
  • Both A and B

29. What is the name given for all the resources owned by the business?

  • Assets
  • Liabilities
  • Capital
  • All of the Above

30. The Statement of Financial Position shows what a business owns and owes at a specific date.

  • True
  • False

31. The Statement of Financial Position consist of three main accounts which are :

  • Assets
  • Libilities
  • Capital
  • All of the Above

32. Select the item which is a fixed asset

33. Non current liability are financial obligations that are due for settlement within 1 year. True or False

  • True
  • False

34. Which of the following is a Non current asset?

  • Furniture
  • Other Receivables
  • Trade payables
  • All the above are or can be non-current assets

35. Current Assets are cash or other assets that are expected to be converted to cash within a year

  • True
  • False

36. The table below shows Claude's assets and liabilities.  What is the total value of his assets?

  • $24,950
  • $25,420
  • -$24,950
  • $50,370

37. Which of the following is considered a liability?

  • Savings Account
  • Mortgage
  • Savings bond
  • Coin Collection

38. Which of the following is considered an asset?

  • Bank Loan
  • Mortgage
  • Debit Card
  • Savings account

39. Net Worth if equal to:

  • Liabilities added to assets
  • Assets minus liabilities
  • Assets added to liabilities

40. Dose expense in the liability/Assets account?

  • Assets
  • Liability

41. Which item do we always begin the preparation of the balance sheet with?

  • The Capital
  • The name of the sole trader or company
  • The Date
  • The Assets

42. Net Assets = Total Assets -

  • liabilities
  • liability
  • total liabilities
  • total liability

43. Calculate the total assets?Current Assets - $100.00Fixed Assets - $200Current Liabilities -$300Capital - $100

  • 300
  • 400
  • 500
  • 200

44. Select which two items we use when we are calculating the Net Assets/ Working Capital

  • Total Assets
  • Financed by
  • Capital
  • Total Liabilities

45. Select the item which is not a component of a balance sheet.

  • Fixed Assets
  • Current Assets
  • Current Liabilities
  • Expenses

46. A _______________ is a resource that is owned by a business.

  • asset
  • assets

47. Non-current liabilities are monies owed but not due for payment in the near future. Which of the following is an example of non-current liability?

  • Bank Loan
  • Accounts Receivable
  • Accounts Payable
  • Capital

48. Which of the following is an example of current liability?

  • Cash
  • Accounts Receivable
  • Accounts Payable
  • Capital

49. _________________ are monies owed and are due for repayment in the short term

  • current liability
  • non-current liability
  • current asset
  • capital

50. What is the name given to the owner's or proprietor's account in the business?

  • Assets
  • Liability
  • Capital
  • All of the Above

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