Accounting Concepts Quiz

Assets , for example, buildings, machines are intangible assets.

• TRUE

• FALSE

The two sides of a balance sheet always have the different total.

• TRUE

• FALSE

The accounting equation can be rewritten as Assets – Liabilities = Net Assets.

• TRUE

• FALSE

Company profit is usually divided into three ways: into dividends, production cost and earnings.

• TRUE

• FALSE

What does a balance sheet show?

• The company’s assets, liabilities, and capital.

• The company’s revenues and expenses.

• The company’s directors and staff

• The company’s employers and employees

Assets that a company needs in order to operate its business over a long period of time are called _________.

• current assets

• intangible assets

• tangible assets

• long-term assets

Which of the following best explains the term ‘non-current asset’ ?

• Common shares

• Account receivable

• Inventories

• Machines

To start a business, you need to have _______.

• revenue

• capital

• liability

• interest

A part of the company’s profit goes to the government in the form of __________.

• income

• retained earnings

• dividends

• taxes

Which of the following is a balance sheet item?

• Retained profit

• Sales

• Purchases

• Tax