Accounting Basics Quiz - Assets

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| By Frankwood
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Frankwood
Community Contributor
Quizzes Created: 4 | Total Attempts: 12,571
Questions: 8 | Attempts: 192

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Accounting Quizzes & Trivia

The Accounting Basics Quiz on Assets is designed to evaluate your comprehension of fundamental accounting concepts related to assets. This quiz covers a variety of topics, including the classification of assets, the accounting equation, and the impact of asset transactions on financial statements.

Participants can expect questions that assess their knowledge of different types of assets, such as current assets and non-current assets, as well as their understanding of how asset transactions affect the balance sheet. The quiz may cover topics like depreciation, impairment, and the overall management of assets within an accounting framework.

Whether you are a student learning Read moreaccounting principles or a professional seeking to reinforce your understanding of asset-related concepts, this quiz offers an engaging way to test your knowledge and enhance your proficiency in handling assets within the realm of accounting.


Questions and Answers
  • 1. 

    A(n)    ................   is something that has future or potential value.

    • A.

      Liability

    • B.

      Asset

    • C.

      Stockholder

    Correct Answer
    B. Asset
    Explanation
    An asset is something that has future or potential value. It can be a physical object, such as property or equipment, or it can be an intangible item, such as intellectual property or goodwill. Assets are typically owned or controlled by an individual or an organization and can be used to generate income or provide future benefits.

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  • 2. 

    Pens, paper and printing cartridges are all examples of prepayments

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    They are all examples of supplies

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  • 3. 

    Which one of the following items is not an asset?

    • A.

      Prepayment of rent

    • B.

      Inventory

    • C.

      Bank Loan

    • D.

      Building

    Correct Answer
    C. Bank Loan
    Explanation
    A bank loan is not considered an asset because it represents a liability for the borrower. It is a debt that needs to be repaid to the bank, and therefore it does not have any intrinsic value or generate future economic benefits for the borrower. In contrast, the other options listed - prepayment of rent, inventory, and building - are all tangible or intangible assets that have value and can contribute to the financial position of an individual or a company.

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  • 4. 

    What is the main differnce between supplies and inventory?

  • 5. 

    Credit card receipts are examples of ACOUNTS PAYABLE

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    They are examples of ACCOUNTS RECEIVABLE

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  • 6. 

    Which of the following items below would be classified as Long Life Assets?

    • A.

      Land and Buildings

    • B.

      Inventory

    • C.

      Motor Vehicles

    • D.

      Supplies

    • E.

      Fixtures and Fitings

    • F.

      Cash at bank

    Correct Answer(s)
    A. Land and Buildings
    C. Motor Vehicles
    E. Fixtures and Fitings
    Explanation
    Inventory, Supplies and Cash/bank are short term assets or Current Assets.

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  • 7. 

    Insurance paid in advance is known as a

    Correct Answer(s)
    prepayment
    prepayments
    prepay
    prepaid
    Explanation
    Insurance paid in advance is known as a prepayment. This term refers to the act of paying for insurance coverage before it is actually needed or utilized. It is a common practice in the insurance industry for policyholders to make prepayments to ensure continuous coverage and avoid any lapses in their insurance policies. The terms "prepayments," "prepay," and "prepaid" are all related to the concept of making advance payments for insurance services.

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  • 8. 

    How would you define an asset?

Quiz Review Timeline +

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

  • Current Version
  • Dec 29, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 26, 2010
    Quiz Created by
    Frankwood
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