Business Basics Quiz - Assets, Liabilities, Capital....

Resources owned by the business are knows as

• assets

• capital

• expenses

• liabilities

A liability is defined as an obligation to take care of a debt.

• True

• False

Which of the following would be classified as liabilities?

• Capital, accounts payable, cash

• Cash, cash at bank, accounts payable

• Accounts payable, bank overdraft, loan

• Capital, cash, accounts payable

Accounts Receivables/Debtors is classified as

• capital

• fixed asset

• current asset

• current liabilities

Cash is classified as a

• current asset

• current liability

• fixed asset

• non-current liability

Mortgage and a five-year bank loan are classified as

• current assets

• current liabilities

• non-current assets

• non-current liabilities

Which of the following is a typical example of a non-current liability?

• Mortgage

• Accounts payable

• Accounts receivable

• Factory building

Non-current liabilities are also referred to as long-term liabilities.

• True

• False

Fixed assets are also called non-current assets.

• True

• False

Capital is also called Owner's Equity

• True

• False