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Pre-Test: LAS 3 - FABM 1

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

It is an asset that do not have a physical existence.

a)

Current Asset

b)

Fixed Asset

c)

Intangible Assets

d)

Other Asset

2.

It is a proportion of the total value of a company’s assets that can be claimed by the owners.

a)

Asset

b)

Liability

c)

Income

d)

Owner’s Equity

3.

What is the accounting equation?

a)

A=L+OE

b)

A+L=OE

c)

A-L=OE

d)

A+OE=L

4.

It is anything of value or a resource of value that can be converted into cash.

a)

Asset

b)

Liability

c)

Income

d)

Owner’s Equity

5.

It is a formal written promise to pay definite sums of money owed at specified times.

a)

Accounts Payable

b)

Notes Payable

c)

Accounts Receivable

d)

Notes Receivable

6.

It is a business earns when it sells its products or render services.

a)

Asset

b)

Liability

c)

Revenue

d)

Expenses

7.

It’s when the customers paid in advance for products or services that have not been delivered or rendered.

a)

Asset

b)

Income

c)

Revenue

d)

Unearned Revenue

8.

According to matching principle states that no revenue can be earned without incurring corresponding ______________________?

a)

Asset

b)

Expenses

c)

Revenue

d)

Liability

9.

These are obligations by the business.

a)

Asset

b)

Expenses

c)

Liability

d)

Revenue

10.

Equity is?

a)

A-L

b)

A+L

c)

A*L

d)

A/L