Lost on assets and liabilities? Actress Mae West once said, “Brains are an asset to the woman in love who’s smart enough to hide ‘em." While you don’t want to hide your assets or liabilities on your balance sheet, this quiz will test your knowledge on how well you know the difference.
Most assets and liabilities are listed on a standard balance sheet; however, because the balance sheet is a snapshot of your business, some of those asset and liability summary totals are made up of sub-accounts found in your general ledger.
Financial accounting can be a challenge, but if you take it step by step, the process starts to make sense. You develop a better reasoning on why you must perform one function after the other to get to your bottom line profit (or loss).
So, ready, set go! See how well you do on this asset versus liability quiz. Good luck—the test contains 15 questions.