Asset Or Liability? Take This Quiz To Find Out!

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Asset Or Liability? Take This Quiz To Find Out! - Quiz

If you work in accounting, you must know that assets have the ability to increase companies going concern, whereas liabilities are those things that represent money to be laid out. Take up the trivia quiz below and see how well you differentiate the two based on the above definition and what we covered in class. All the best!


Questions and Answers
  • 1. 

    Buying a car.

    • A.

      Asset

    • B.

      Liability

    • C.

      Both

    Correct Answer
    C. Both
    Explanation
    The classification of buying a car as an asset or a liability depends on its use and impact on your finances. In many cases, buying a car is considered a liability because it typically involves ongoing expenses like fuel, maintenance, insurance, and depreciation in value. However, if the car is used for income-generating purposes or appreciates in value over time, it can be viewed as an asset. The most apt classification depends on how you utilize the car in your financial context.

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  • 2. 

    Buying a house.

    • A.

      Asset

    • B.

      Liability

    Correct Answer
    B. Liability
    Explanation
    In accounting world , house is an asset. but it costs money to run, anything that takes money out while you are sleeping is a Liability

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  • 3. 

    A Camera.

    • A.

      Asset

    • B.

      Liability

    Correct Answer
    B. Liability
    Explanation
    A camera is considered a liability because it represents a financial obligation or debt. It is an item that requires ongoing expenses such as maintenance, repairs, and insurance. Additionally, a camera may depreciate in value over time, further adding to its liability status.

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  • 4. 

    Buying a house for you to rent out

    • A.

      Asset

    • B.

      Liability

    • C.

      Cant really tell

    Correct Answer
    C. Cant really tell
    Explanation
    If the payment to keep the house up is higher than the rental income, then it is a liability instead of an asset - but that's another story for another day... tricky huh?

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  • 5. 

    A camera for a photographer.

    • A.

      Asset

    • B.

      Liability

    Correct Answer
    A. Asset
    Explanation
    Get it? If a photographer uses his camera to bring money in, then it's an asset. If you take photos of birds and they stay in your hard drive for a million years, then it's a liability.

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  • 6. 

    Children?

    • A.

      Asset

    • B.

      Liability

    • C.

      Depends

    • D.

      I dont know

    • E.

      All of the above

    Correct Answer
    E. All of the above
    Explanation
    How bored am I with all these quizzes!!

    Rate this question:

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Oct 06, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Aug 29, 2008
    Quiz Created by
    Pertamana
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