Accounting Terms Quiz-1

Which of the following is an example of a non-current asset that is not depreciated?

• Land held for future use

• Office Furniture

• Delivery Trucks

• Computer Equipment

Which of the following is not a loose tool?

• Hammer

• Screwdriver

• An axe

• Wrench

Answer explanation

An axe is not a loose tool because it is used for cutting and chopping, not for fastening or loosening objects like the other tools mentioned.

Which of the following is the correct definition of an entity?

• A thing or object in the real world that is distinguishable from all other objects.

• A set of data that is stored together in a database.

• A person, place, thing, or event that is represented in a database.

• A relationship between two or more entities.

Which of the following is not an expenditure?

• Selling expenses

• Administrative expenses

• Cost of goods sold

• Interest expense

Which of the following is NOT considered a non-current asset?

• Property, Plant, and Equipment

• Accounts Receivable

• Intangible Assets

• Investments in Other Companies

Which of the following is the correct definition of insolvent?

• A sole proprietor who is unable to pay their debts as they become due.

• A sole proprietor who has no assets.

• A sole proprietor who has more liabilities than assets.

• All of the above.

Which of the following is the correct definition of a bad debt?

• A debt that is unlikely to be paid in full.

• A debt that is past due and has not been paid.

• A debt that is disputed by the debtor.

• All of the above.

Which of the following is not a fictitious asset?

• Preliminary expenses

• Discount on issue of shares

• Loss on issue of debentures

• Organization expenses

What are the consequences of a sole proprietor being declared insolvent?

• The sole proprietor may have to file for bankruptcy.

• The sole proprietor's creditors may be able to seize their assets.

• The sole proprietor may be personally liable for their debts.

• All of the above.

Which of the following is not a revenue?

• Sales revenue

• Interest revenue

• Dividend revenue

• Gain on sale of assets