University Of Arizona ATMO 005 Quiz 1 1)Which of the following best represents the equation for the balance sheet? Revenues – Liabilities = Net Income Assets – Liabilities = Net Income Revenues – Expenses = Net Income Assets + Revenues – Expenses – Liabilities = Net Income Assets = Liabilities + Owners’ Equity   2

University Of Arizona

ATMO 005

Quiz 1

1)Which of the following best represents the equation for the balance sheet?

Revenues – Liabilities = Net Income

Assets – Liabilities = Net Income Revenues – Expenses = Net Income

Assets + Revenues – Expenses – Liabilities = Net Income

Assets = Liabilities + Owners’ Equity

2. In order to be profitable (i.e. have a positive net income),

 revenues must be more than expenses.

revenues must be less than expenses.

revenues must be equal to expenses.

none of the above.

3. An asset could best be described as, the value of “stuff” a company sold.

used.

 owns.

owes.

4. For an individual, which of the following would be considered a liability? Cash balance in bank

Outstanding loan balance

 Furniture

Computer equipment

None of the above

5. What were your virtual company’s (i.e. class section in Lemonade Tycoon) total revenues for the most recent single day of operations?