Self-test on Assets and Liabilities

Which of the following is an asset?

• A trade payable

• A loan

• Drawings

• A prepayment

Which of the following is a liability?

• Depreciation

• An accrual

• Cash at bank

• Plant and machinery.

Capital is the amount:

• The entity's owners owe to it

• The entity's customers owe to it

• The entity owes to its creditors

• The entity 'owes' to its owners

Which of the following are assets of an entity?

• Trade payables

• Trade receivables

• Bank overdraft

• Cash in hand

Which of the following best describes the accruals concept?

• Assets are matched with liabilities

• Revenue is matched with expenses

• Expenses are matched with assets

• Income is matched with liabilities

Which of the following is a non-current liability?

• A bank overdraft

• A bank loan repayable within a year

• A mortgage repayable in five years' time

• A trade payable

The statement of financial position sets out the entity's:

• Financial position over a period of time

• Financial performance over a period of time

• Financial position at one point in time

• Financial performance at one point in time

Which of the following expenses is included in cost of sales?

• Sales people's salaries

• Management salaries

• Overdraft interest

• Cost of raw material

Which of the following is considered a current asset?

• Equipment

• Inventory

• Land

• Goodwill

Which of the following is an example of an operating expense?

• Cost of goods sold

• Rent for office space

• Loan interest payments

• Purchase of machinery