Assets & Liabilities Quiz

What are assets?

• Resources that can be converted into cash

• Future sacrifices of economic benefits

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

• Stock

• Land

What are fixed assets also known as?

• Intangible assets

• Hard assets

What are non-operating assets used for?

• To generate revenue

• To help generate significant revenue

What type of asset is a vehicle?

• Personal asset

• Government asset

Why do we need to be familiar with assets?

• To increase liabilities

• To manage finances effectively

What are liabilities?

• Financial obligations

• Resources that can be converted into cash

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

• Personal loans

• House rentals

What are contingent liabilities?

• Potential losses that may or may not arise

• Financial obligations due within a year

How do liabilities become assets?

• By converting into resources that can be converted into cash

• By decreasing expenses