Share Accounting & Financial Projections
Save to Folder
What is the accounting equation?
Assets = Liabilities + Equity
Give me an example of a depreciating asset.
Answers will vary
In accounting, what do we call a resource with economic value that is owned or controlled by an entity?
An asset
In accounting, what is an obligation or debt that an entity (typically a business) owes to another party?
A liability
In the context of accounting, please provide a definition for equity.
Equity, also known as owner's equity or shareholders' equity, represents the residual interest in the assets of an entity after deducting its liabilities.
Give me 2 examples of liabilities that a business might have.
Answers will vary
Give me one example of an appreciating asset.
Answers will vary
What is the purpose of a balance sheet, and how is it structured?
to provide a snapshot of a company's financial position at a specific point in time. It shows what a company owns (assets), what it owes (liabilities), and the
Give me an example of revenue.
Answers will vary
Pretend you own a lemonade stand. Would lemons be a direct or indirect expense?
Direct
Pretend you own a jewelry store. Would the rent you pay for your retail space be consider a direct or indirect expense?
Indirect
What is the difference between revenue and profit?
Revenue represents the total income generated by a business from its primary operations. Profit, is the financial gain a company makes after all expenses.
Is cash an example of a liability?
No
If ABC plumbing has $500 in assets and $300 in liabilities, what is the owners equity?
$200
True or false: Cash is the most liquid asset you can have.
True
Did Chester's Churros turn a profit last month with $800 in revenue and $900 in expenses?
No
