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QUIZ # 2 FABM2

Total questions: 15

Worksheet time: 3mins

Name
Class
Date
1.

1. It pertains to resources which are controlled and owned by the business.

a)

a. Assets

b)

b. Liabilities

c)

c. Equity

d)

d. Resources

2.

2. It is derived from deducting the total liabilities to the total assets of a company.

a)

a. Assets

b)

b. Liabilities

c)

c. Equity

d)

d. Resources

3.

3. Which of the following pertains to the obligations that the business owed to other entities arising from past events which are to be settled in the future?

a)

a. Assets

b)

b. Liabilities

c)

c. Equity

d)

d. Resources

4.

4. Which of the following is the correct Accounting Equation?

a)

a. Assets + Liabilities = Equity

b)

b. Assets = Liabilities - Equity

c)

c. Assets = Liabilities + Equity

d)

d. Assets + Equity = Liabilities

5.

5. Which of the following is classified as Current Asset?

a)

a. Prepaid Expenses

b)

b. Land

c)

c. Delivery Vehicle

d)

d. Copyright

6.

6. Which of the following financial statements presents the financial position of an entity at a given or specific date?

a)

a. Income Statement

b)

b. Statement of Financial Position

c)

c. Statement of Changes in Equity

d)

d. Statement of Cash Flows

7.

7. All of the following are classified as Assets, EXCEPT:

a)

a. Accounts Receivable

b)

b. Inventory

c)

c. Building

d)

d. Accounts Payable

8.

8. Which of the following is classified as a non-current liability?

a)

a. Accounts Payable

b)

b. Mortgage Payable

c)

c. Utilities Payable

d)

d. Unearned Revenue

9.

9. Which of the following is classified as a current asset?

a)

a. Prepaid Rent

b)

b. Unearned Rent

c)

c. Investments

d)

d. Drawings

10.

10. In which part of Statement of Financial Position does the Salaries Payable be listed?

a)

a. Assets

b)

b. Liabilities

c)

c. Owner’s Equity

d)

d. Expenses

11.

12. It is a form of the Statement of Financial Position that is presented in a horizontal format.

a)

a. Report form

b)

b. Account form

c)

c. Digital form

d)

d. Line form

12.

11. The following are elements of Statement of Financial Position EXCEPT:

a)

a. Assets

b)

b. Liabilities

c)

c. Equity

d)

d. Expenses

13.

13. It is a form of the Statement of Financial Position that is presented in a vertical format.

a)

a. Report form

b)

b. Account form

c)

c. Digital form

d)

d. Line form

14.

14. An item is considered current when__________?

a)

a. It is expected to be used or converted into cash or to be paid for more than one year

b)

b. It cannot be converted or realizable into cash within a year.

c)

c. It is expected to be used or realizable into cash or to be paid within a year.

d)

d. It has an expected life for more than 12 months

15.

15. A non-current item is ___________.

a)

a. expected to be used/realizable into cash or to be paid for more than one year.

b)

b. Expected to be converted or realizable into cash within a year.

c)

c. expected to be used or paid within a year.

d)

d. item bought for readily consumption/ production.