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CF 6 Asset

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.
What are company assets?
a)
The debts a company owes
b)
The things a company owns
c)
The salaries of the employees
d)
The taxes a company pays
2.
Which of the following is an example of a current asset?
a)
A building
b)
Land
c)
Inventory
d)
Patents
3.
Which of the following is not an example of a fixed asset?
a)
Equipment
b)
Buildings
c)
Land
d)
Accounts receivable
4.
Which of the following is an example of an intangible asset?
a)
Land
b)
Buildings
c)
Patents
d)
Equipment
5.
Which financial statement lists a company's assets?
a)
Income statement
b)
Balance sheet
c)
Cash flow statement
d)
Statement of changes in equity
6.
Which of the following is an example of a long-term asset?
a)
Accounts receivable
b)
Inventory
c)
Patents
d)
Cash
7.

The financial statement showing a firm's accounting value on a particular date is the:

a)

Balance Sheet

b)

Income Statement

c)

Statement of Cash Flows

d)

ALL

8.

The financial statement summarizing a firm's performance over

a)

Balance Sheet

b)

Income Statement

c)

Tax reconciliation statement

d)

All correct

9.

A current asset is:

a)

An item currently owned by the firm

b)

An item that the firm expects to own within the next year

c)

An item currently owned by the firm that will convert to cash within the next 12 months

d)

The amount of cash on hand the firm currently shows on its statement of financial position

10.

The long-term debts of a firm are

a)

Liabilities that come due within the next 12 months

b)

Liabilities that do not come due for at least 12 months

c)

Liabilities owed to the firm's supplier

d)

Liabilities owed to the firm's shareholders

11.

A(n) _________ asset is one which can be quickly converted into cash without significant loss in

value

a)

Current

b)

Fixed

c)

Intangible

d)

Liquid

12.

Financial leverage refers to:

a)

The proportion of debt used in a firm's capital structure

b)

The ratio of retained earnings to shareholders' equity.

c)

The ratio of paid-in surplus to shareholders' equity

d)

The ratio of cost-of-goods-sold to total sales

13.

________________ refers to the cash flow that results from the firm's ongoing, normal business

activities.

a)

Operating cash flow

b)

Capital spending

c)

Cash flow from assets

d)

Cash flow to creditors

14.

Which of the following statements is true?

a)

Liabilities equal assets plus shareholders' equity

b)

Shareholders' equity equals assets plus liabilities

c)

Shareholders' equity equals liabilities minus assets

d)

Assets equal liabilities plus shareholders' equity

15.

The ease and speed with which an asset can be converted into cash is called:

a)

Liquidity

b)

Marketability

c)

Convertibility

d)

Transferability