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Week 3 - Quiz

Total questions: 10

Worksheet time: 12mins

Name
Class
Date
1.

Select the 'Account' which matches the definition: Amounts owed by the business to other people or enterprises

a)

Revenue

b)

Assets

c)

Liabilities

d)

Owners Equity

2.

The equation for calculating Owner's Equity is: OE =

(a)  

3.

Look at the image above and select the answer that matches best.

a)

The business assets are equal to the business liabilities and owners equity

b)

The business has more assets in the business than liabilities and owners equity

c)

The business has more liabilities and owners equity in the business than assets

4.

The _____________ _____________ _____________ implies that accounting data from the business is isolated and will be the same regardless of the personal finances of its owners.

(a)  

5.

Assets are items of value that can be given a monetary value.

______________ assets can be seen and touched such as a computer, machinery, furniture

a)

Physical

b)

Tangible

c)

Intangible

d)

Material

6.

Does the scenario relate to the accounting entity assumption? Explain your answer.


Tom owns a fencing company. He buys a new computer, it is setup at his house. He uses the computer to play "Call of Duty" when he comes home from work.

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7.

Magic Minds store declares their liabilities as $7,000 and their owner's equity as $123,000 what is Magic Minds assets? Calculation: A = L+OE

(a)  

8.

_________ ____________ are expected to be repaid in the short term of 12 months or less such as credit card debts and accrued purchases for things like stock

a)

Liabilities

b)

Current liabilities

c)

Noncurrent liabilities

d)

Debts

9.

Select the definition that best suits: Accounts Receivable:

a)

Amounts of money the bank owes, either to pay their bills or supplier accounts.

b)

Amounts of money owed to the business which have not been paid yet and have not reached the bank account yet

c)

Payment of employee wages which are paid at either a weekly, fortnightly or monthly increments

d)

Money the bank pays to the business once a tax claim is completed at the end of financial year

10.

"Its not about having lots of money you have, it's knowing how to manage it" - Warren Buffett finance billionaire


Do you agree with the statement, yes or no. Please explain your answer

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