17.5 - Balance Sheet
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Practice Questions
Test your understanding with targeted questions
What are the three main components of a Balance Sheet?
💡 Hint: Think about what the business owns and owes.
Define Owner's Equity.
💡 Hint: It's what's left for the owner after paying off what the business owes.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does a Balance Sheet represent?
💡 Hint: Remember what it shows about the business.
True or False: Owner's equity increases when a business incurs a loss.
💡 Hint: Think about how profits affect owner's equity.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
If a company has total assets of $1,250,000 and total liabilities of $750,000, what is the owner's equity? Further, explain how this owner's equity could change if the company takes a new loan.
💡 Hint: Remember the accounting equation and how changes affect it.
Create a hypothetical Balance Sheet for a small business with the following information: Assets ($200,000), Liabilities ($120,000), and explain how changing the values of Assets or Liabilities will impact Owner’s Equity.
💡 Hint: Refer back to the accounting equation for your explanations.
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