Q2 TLE09 Assessment Review

What are items of value that a business owns

• Liabilities
• Equities
• Assets
• Expenses

Answer explanation

Assets are defined as items that are of value and are owned by a business.

Which of the following is a primary component of a balance sheet

• Revenue
• Expenses
• Owner's Equity
• Costs

Answer explanation

Assets liabilities and owner's equity are the three components of a balance sheet.

For an item to be listed as an asset it must be valuable measurable and what else

• New
• Insured
• Controlled by the business
• Liquid

Answer explanation

An asset must be controlled (owned) by the business have a measurable value and have value to the business.

What category do assets fall into if they are expected to be converted to cash within one year

• Noncurrent assets
• Tangible assets
• Current assets
• Intangible assets

Answer explanation

Current assets are expected to be converted into cash or other assets within a period of one year.

Inventory and cash balances are examples of what

• Noncurrent assets
• Current assets
• Owner's equity
• Liabilities

Answer explanation

Inventory trade receivables and bank and cash balances are examples of current assets.

Which assets are not expected to be converted into cash within one year

• Current assets
• Liquid assets
• Bank balances
• Noncurrent assets

Answer explanation

Noncurrent assets are not expected to be converted into cash within a period of one year.

Noncurrent assets are typically valuable to a business for how long

• Less than six months
• More than a year
• Exactly one year
• Less than a year

Answer explanation

Noncurrent assets are expected to be of value to the business for more than a year.

What are noncurrent assets with a physical substance called

• Intangible assets
• Current assets
• Tangible assets
• Liquid assets

Answer explanation

Tangible assets are a type of noncurrent asset that have a physical substance.

Land buildings and machinery are common examples of what type of asset

• Intangible noncurrent assets
• Current assets
• Tangible noncurrent assets
• Trade receivables

Answer explanation

Common examples of tangible noncurrent assets are land buildings machinery equipment vehicles and furniture.

Which of these is an example of an intangible asset

• A company vehicle
• Office equipment
• A building
• A patent

Answer explanation

Intangible assets are without physical form like patents copyrights and trademarks.