Basic Accounting
Quiz by Lama Alshami
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- Q1
Which of the following items would not fall under the definition of an asset?
Cash
Owner’s equity
Land
Machinery
30s - Q2
Which one of the following items would fall under the definition of a liability?
Owner's equity
Tax owed
None of the above
Cash
30s - Q3
Which of the following statements is false?
The accounting equation shows how much of your assets belong to the owner, and how much ‘belong’ to people outside the business.
A liability is a debt for your business.
If you cannot work out a value for an item that will bring you future benefits, then you cannot keep this as an asset in your records.
Debtors are a debt for your business.
30s - Q4
A business has the following items in it:
- Land $1,000,000
- Machinery $20,000
- Cash $10,000
- Debt $0
- Owner’s equity ______?
What is the value of the owner’s equity?
$1,020,000
$1,000,000
$1,030,000
None of the above.
30s - Q5
A business has the following items in it:
- Land $1,000,000
- Machinery $20,000
- Cash $10,000
- Loan $500,000
- Owner’s equity ______?
What is the value of the owner’s equity?
$1,030,000
$1,000,000
$530,000
$500,000
30s - Q6
A business has the following items in it:
- Owners equity $600,000
- Total liabilities $1,400,000
- Assets ______?
What is the value of the assets in this business?
$2,000,000
$800,000
$1,400,000
$600,000
30s - Q7
Which of the following statements are true?
A business whose liabilities are greater than its assets has a bad financial position.
A business whose liabilities are greater than its owner’s equity has a bad financial position.
A business whose assets are greater than its owner’s equity has a bad financial position.
None of the above
30s