An Introduction to Understanding Financial Statements

Understanding Financial Statements

Practice Excercise

The following excercise should aid in understanding Double Entry Accounting. Please answer the questions below and proceed by clicking the Appropriate button located next to the answer

1.	Accounts receivable would be considered:

		Liability
		Fixed asset
		Current asset
		None of the above

2.	Common equity includes

		Common Stock
		Capital Surplus
		Retained earnings
		All of the above

3.	Preferred stock would be considered

		A current liability
		A long-term liability
		Owner's Equity
		None of the above
		All of the above

4.	Intangible assets would include

		Goodwill
		Trademarks
		Copyrights
		All of the above
		None of the above

5.	Long-term liabilities are those that

		are due in 1 year or more
		are due in 5 years or more
		are due in 10 years or more
		None of the above