Accounting Basics Quiz - Assets
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A(n) ................ is something that has future or potential value.
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Liability
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Asset
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Stockholder
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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 See moreand 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 accounting 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.
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- 2.
Which one of the following items is not an asset?
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Prepayment of rent
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Inventory
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Bank Loan
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Building
Correct Answer
A. Bank LoanExplanation
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.Rate this question:
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- 3.
Pens, paper and printing cartridges are all examples of prepayments
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True
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False
Correct Answer
A. FalseExplanation
They are all examples of suppliesRate this question:
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- 4.
Credit card receipts are examples of ACOUNTS PAYABLE
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True
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False
Correct Answer
A. FalseExplanation
They are examples of ACCOUNTS RECEIVABLERate this question:
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- 5.
Insurance paid in advance is known as a
Correct Answer
prepayment
prepayments
prepay
prepaidExplanation
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.Rate this question:
- 6.
Which of the following items below would be classified as Long Life Assets?
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Land and Buildings
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Inventory
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Motor Vehicles
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Supplies
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Fixtures and Fitings
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Cash at bank
Correct Answer(s)
A. Land and Buildings
A. Motor Vehicles
A. Fixtures and FitingsExplanation
Inventory, Supplies and Cash/bank are short term assets or Current Assets.Rate this question:
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- 7.
What is the main differnce between supplies and inventory?
- 8.
How would you define an asset?
Quiz Review Timeline (Updated): Dec 29, 2023 +
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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Dec 29, 2023Quiz Edited by
ProProfs Editorial Team -
Dec 26, 2010Quiz Created by
Frankwood
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