Q.1
Cash is listed asA = AssetsL = LiabilitySE = Stockholders Equity
  • A
  • L
  • SE
Q.2
Equity is the
  • financing provided by suppliers
  • financing provided by the bank
  • amount of financing provided by earnings alone.
  • amount of financing provided by owners of the business and earnings.
Q.3
Retained Earnings is
  • All financing being retained
  • Past earnings not distributed to stockholders.
  • Current periods earnings not distributed
  • Everything left over after current periods dividends
Q.4
Liabilities
  • are promises the business is planning to make
  • are debts or obligations of the business from past transactions
  • verbal promises made by the business from past times
  • are debts or obligations of the owner made in the last week
Q.5
On a balance sheet, if total assets are $15,and Total Liabilities are $10, Owner's Equity will equal:
  • 5,000
  • 25,000
  • 7,500I
Q.6
A balance sheet has four sections: 1)heading 2)assetsliabilities and 4)
  • credits
  • debits
  • owner's equity
Q.7
Non current liability are financial obligations that are due for settlement within 1 year. True or False
  • True
  • False
Q.8
Which of the following is a Non current asset?
  • Furniture
  • Other Receivables
  • Trade payables
  • All the above are or can be non-current assets
Q.9
Current Assets are cash or other assets that are expected to be converted to cash within a year
  • True
  • False
Q.10
Which of the following is considered a liability?
  • Savings Account
  • Mortgage
  • Savings bond
  • Coin Collection
Q.11
Which of the following is considered an asset?
  • Bank Loan
  • Mortgage
  • Debit Card
  • Savings account
Q.12
A _______________ is a resource that is owned by a business.
  • short term
  • asset
  • None of these
Q.13
Net Worth if equal to:
  • Liabilities added to assets
  • Assets minus liabilities
  • Assets added to liabilities
Q.14
Dose expense in the liability/Assets account?
  • Assets
  • Liability
Q.15
Which item do we always begin the preparation of the balance sheet with?
  • The Capital
  • The name of the sole trader or company
  • The Date
  • The Assets
Q.16
Net Assets = Total Assets -
  • liabilities
  • Total Long
  • Both A & B
  • None of these
Q.17
Select the item which is not a component of a balance sheet.
  • Fixed Assets
  • Current Assets
  • Current Liabilities
  • Expenses
Q.18
Select which two items we use when we are calculating the Net Assets/ Working Capital
  • Total Assets
  • Total Liabilities
  • Capital
  • Both A & B
Q.19
Calculate the total assets?Current Assets - $100.00Fixed Assets - $200Current Liabilities -$300Capital - $100
  • 300
  • 400
  • 500
  • 200
Q.20
Whcih of the following consist of only assets?
  • Car, Bank Loan, Computer
  • Creditor, Debtors, Cash at Bank
  • Debtors. Cash at bank, Building
  • Cash in hand, cash at bank, creditors
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