Quiz on Types of Major Accounts

What are the five major accounts in accounting?

• Assets, liabilities, owner's equity, revenues, and expenses

• Assets, liabilities, owner's equity, dividends, and revenues

• Assets, liabilities, owner's equity, revenues, and profits

• Assets, liabilities, owner's equity, revenues, and investments

Which of the following is an example of an asset?

• Mortgages

• Salaries

• Interest

• Cash

What do liabilities represent?

• The company's obligations

• The company's assets

• The company's earnings

• The owner's claims

What is owner's equity?

• The expenses incurred by the company

• The revenue generated by the company

• The owner's claims in the business

• The total liabilities of the company

Which of the following is an example of revenue?

• Rent expense

• Sale of building materials

• Salaries expense

• Utilities expense

What are current assets?

• Assets that cannot be sold within a year

• Assets that can be collected or used up within a year

• Assets that are intangible

• Assets that are only physical

Which of the following is a non-current asset?

• Furniture

• Inventory

• Accounts receivable

• Cash

What are tangible assets?

• Non-physical assets

• Physical assets like cash and furniture

• Assets that are only intangible

• Assets that cannot be touched

What defines current liabilities?

• Liabilities that are intangible

• Liabilities that are not due

• Liabilities that are long-term

• Liabilities due within one year

What is capital in terms of owner's equity?

• The total liabilities of the business

• The expenses incurred by the business

• The worth of cash and other assets invested in the business

• The total revenue of the business