Asset Or Liability? Take This Quiz To Find Out!
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!
- 1.
Buying a car.
- A.
Asset
- B.
Liability
- C.
Both
Correct Answer
C. BothExplanation
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.Rate this question:
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- 2.
Buying a house.
- A.
Asset
- B.
Liability
Correct Answer
B. LiabilityExplanation
In accounting world , house is an asset. but it costs money to run, anything that takes money out while you are sleeping is a LiabilityRate this question:
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- 3.
A Camera.
- A.
Asset
- B.
Liability
Correct Answer
B. LiabilityExplanation
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.Rate this question:
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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 tellExplanation
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?Rate this question:
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- 5.
A camera for a photographer.
- A.
Asset
- B.
Liability
Correct Answer
A. AssetExplanation
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.Rate this question:
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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 aboveExplanation
How bored am I with all these quizzes!!Rate this question:
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Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Oct 06, 2023Quiz Edited by
ProProfs Editorial Team -
Aug 29, 2008Quiz Created by
Pertamana
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