Froggy Jumps Balance Sheet and Income Statement ChallengeOnline version Test your knowledge of balance sheets and Income Statements with this fun quiz game! by Jared DeWinter 1 What does a balance sheet primarily show? a A company's financial position at a specific point in time. b A company's income over a year. c A company's cash flow for the month. 2 Which of the following is a component of liabilities? a Retained earnings. b Cash and cash equivalents. c Accounts payable. 3 What equation represents the balance sheet? a Assets - Liabilities = Equity. b Assets = Liabilities + Equity. c Assets + Liabilities = Equity. 4 What are current assets? a Long-term investments. b Fixed assets like buildings. c Assets expected to be converted to cash within a year. 5 Which of these is NOT an asset? a Accounts payable. b Cash. c Inventory. 6 What is equity in a balance sheet? a The owner's claim after liabilities are deducted from assets. b Current assets. c Total liabilities. 7 What is a common example of a long-term liability? a Accounts payable. b Accrued expenses. c Mortgages payable. 8 What does 'working capital' refer to? a Total equity minus total assets. b Total assets minus total liabilities. c Current assets minus current liabilities. 9 Which section of the balance sheet lists cash and inventory? a Liabilities. b Assets. c Equity. 10 What is the purpose of a balance sheet? a To summarize sales revenue. b To detail cash flow. c To provide a snapshot of a company's financial health. 11 What does a balance sheet represent? a A snapshot of a company's financial position at a specific time. b A report on sales revenue. c A summary of a company's cash flow. 12 What are the main components of a balance sheet? a Assets, liabilities, and equity. b Revenue, expenses, and profits. c Sales, costs, and dividends. 13 What does the income statement show? a A company's revenues and expenses over a period. b A list of all assets owned. c A summary of cash transactions. 14 Which of the following is considered an asset? a Cash in the bank. b Accounts payable. c Retained earnings. 15 What is the formula for calculating net income? a Total revenues minus total expenses. b Total assets minus total liabilities. c Total sales minus total costs. 16 What does equity represent in a balance sheet? a The owner's claim after liabilities are deducted. b Total revenue generated by the business. c The total amount of liabilities. 17 Which statement is true about liabilities? a They represent cash reserves. b They are obligations that the company owes to others. c They are profits retained by the company. 18 What is typically found at the top of an income statement? a Total revenue or sales. b Total liabilities. c Net cash flow. 19 Which of the following is a common expense on an income statement? a Inventory. b Accounts receivable. c Cost of goods sold. 20 What does retained earnings represent? a Total liabilities owed. b The cumulative profits reinvested in the business. c Cash reserves available for dividends.
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