Introduction to Assets, Liabilities, Net Worth, and Entrepreneurship

Which of the following is an example of a non-current asset?

• Cash
• Accounts Receivable
• Buildings
• Inventory

Which of the following terms refers to the value of an item once it has been fully depreciated?

• Accounts Receivable
• Capital
• Salvage Value
• Revenue

How do you calculate net worth?

• Divide total liabilities by total assets
• Subtract total liabilities from total assets
• Add total liabilities to total assets
• Multiply total liabilities by total assets

Which of the following is an example of a current liability?

• Accounts Payable
• Salaries payable
• Long-term loan
• Mortgage

What is the definition of salvage value?

• The systematic write-off of the value of a tangible asset over its estimated useful life
• The value of an item once it has been fully depreciated
• The liability arising from the purchase of goods and services on credit
• The balance due from a debtor on a current account

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

• Buildings
• Accounts Payable
• Lender
• Accounts Receivable

What is the definition of accounts receivable?

• The systematic write-off of the value of a tangible asset over its estimated useful life
• A balance due from a debtor on a current account
• The value of an item once it has been fully depreciated
• The liability arising from the purchase of goods and services on credit

How is net worth calculated?

• Total assets minus total liabilities
• Total assets plus total liabilities
• Total liabilities divided by total assets
• Total liabilities minus total assets

What is net worth?

• The total value of all liabilities minus the total value of all assets
• The total value of all assets
• The total value of all liabilities
• The total value of all assets minus the total value of all liabilities

Which of the following is an example of a current asset?

• A car that will be sold within the year
• A house

• A piece of artwork
• A retirement account