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Elements of the Statement of Financial Position

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

What are the elements of the Statement of Financial Position?

a)

Assets, liabilities and equity

b)

Revenue and expenses

c)

Assets, Liabilities, Equity, Revenue and Expenses

d)

None of these choices

2.

These are resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.

a)

Expenses

b)

Liabilities

c)

Assets

d)

Equity

3.

Which of the following is the fundamental accounting equation?

a)

Equity = Assets - Liabilities

b)

Assets = Liabilities + Equity

c)

All of the choices

d)

Value Received = Value Parted With

4.

Which of the following is/are asset account/s?

a)

Cash

b)

Accounts Payable

c)

Accounts Receivable

d)

Rental Income

e)

Prepaid Insurance

5.

Which of the following characteristics describe a liability?

a)

Present obligation

b)

Result of a past transaction

c)

Probable

d)

Must be legally enforceable

6.

Which of the following is a liability account?

a)

Cash Equivalents

b)

Salaries Expense

c)

Unearned Revenue

d)

Service Income

7.

What is Equity?

a)

Cash from the business

b)

Owner's claim on total assets

c)

Liability of a business

d)

Owner's claim on total liabilities

8.

Which of the following is a contra-equity account?

a)

Owner's Drawing

b)

Discount on Notes Payable

c)

Owner's Capital

d)

Allowance for Doubtful Accounts

9.

Which of the following are liability accounts?

a)

Inventories

b)

Accrued Expenses

c)

Notes Payable

d)

Interest Expense

e)

Unearned Income

10.

Asset = (a)   + Owner's Equity