Recognize Assets, Liabilities, Exp, Equity and Income Quiz

Land

Inventory

Equipment

Building

Long-term debt

Current liabilities

Deferred tax liabilities

Contingent liabilities

Interest expense

Depreciation expense

Cost of goods sold

Rent expense

Retained earnings

Share capital

Treasury shares

Dividends

Income statement

Statement of cash flows

Balance sheet

Statement of changes in equity

Cash

Accounts receivable

Machinery

Prepaid expenses

Accounts payable

Bank overdraft

Bonds payable

Accrued expenses

To increase assets

To decrease liabilities

To measure profitability

To increase equity

Retained earnings

Share capital

Accounts payable

Treasury shares

The income statement shows the financial position at a point in time, while the balance sheet shows performance over a period.

The income statement shows performance over a period, while the balance sheet shows the financial position at a point in time.

Both show performance over a period.

Both show the financial position at a point in time.