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WorksheetsAccounting: Assets, Liabilities and Capital
Total questions: 23
Worksheet time: 16mins
On which financial statement does a company report its capital?
Balance Sheet
Cash flow statement
Income Statement
Shareholder equity statement
What are two different definitions of capital?
Assets that cannot be converted to cash and contributions made to a business for the purchase of assets.
One of three basic factors of production that can be used to generate income or the money or property contributed to a business for the purchase of assets.
Plant and equipment.
Money and property.
What's the difference between a long-term, asset and a short-term asset?
A long-term asset has been held for five years, a short term asset has not.
A long-term asset takes over a year to convert to cash, a short term asset does not.
A long-term asset is a physical asset, a short-term asset is not.
A long-term asset in included on the balance sheet, a short-term asset is not.
______________ are assets that can be physically touched.
Intangible assets
Trade names
Tangible assets
Domain names
Items that have a monetary value and are owned by a business are called ____________.
Notes payable
Liabilities
Stockholder's equity
Assets
An example of an intangible asset is ___________.
A trade name
A building
Land
Machinery
Current assets are assets that _________ within one year of the balance sheet date (usually one year).
Are expected to be sold
Can be converted to cash
Will be used up
All of the answers are correct
Assets are reported on that ____________.
Balance sheet
Statement of cash flow
Income statement
None of the answers are correct
According to the accounting equation, accounts are balanced when assets:
Are multiplied by liabilities
Are equal to liabilities plus owners' equity
Are subtracted from liabilities
Are divided by owners' equity
On January 1st 2023, Alaia invested a cash amount of MVR 100,000 to start her salon. Determine the asset, liability and capital value of her salon as of January 1st, 2023.
Assets= MVR 0, Liabilities = MVR 0, and Capital = MVR 100,000
Assets = MVR 100,000, Liabilities = MVR 100,000, and Equity = MVR 100,000
Assets = MVR 0, Liabilities = MVR 100,000, and Capital = MVR 100,000
Assets = MVR 100,000, Liabilities = MVR 0, and Capital = MVR 100,000
Which of the following is NOT an asset for a company?
Land payment
Cash
Equipment
Accounts receivable
Sosun Fihaara has MVR 760,500 in assets and MVR 380,000 in liabilities. How much is the owners' capital?
MVR 350,000
MVR 270,500
MVR 470,000
MVR 380,500
Ayaany decides to open a shop to repair mobile phones. She contributes MVR 1000 from her savings to the business and receives a loan of MVR 2000 from a credit union to purchase store supplies. She is then billed MVR 300 to insure her shop. What is the total value of her liabilities?
MVR 2,700
MVR 2,300
MVR 3,000
MVR 3,300
Which one of the following is the best explanation of liabilities?
Financial obligations owed by the company
Debts
Financial obligations that are over a year old
Debts owed by the company
Which one of the following is the correct formula to determine liabilities?
Liabilities = Capital + Assets
Liabilities = Capital - Assets
Liabilities = Assets - Capital
There is no such formula
On which financial statement are all liabilities reported?
Balance sheet
Income statement
Cash flow statement
Statement of equity
What is the difference between short-term and long-term liabilities?
Short-term liabilities are due within a year; long-term liabilities are due in a year or longer.
Short-term liabilities are due in 30 dat and long-term liabilities are due in more than 30 days.
Short-term liabilities are less than a year old; long-term liabilities are older than a year.
Short-term liabilities are less than 30 dats old; long-term liabilities are older than 30 days.
Which of the following is not a liability?
Sales tax
Notes payable
Accounts payable
Accounts receivable
Which of the following is one of the major categories of non-current assets?
Fixed assets
All answers are correct
Intangible assets
Long-term investments
A non-current asset is one that ______ have it's value fully realised within one year.
Will not
Will
May
Does
Which of the following is an example of a non-current asset?
Accounts receivable
Cash
Buildings
Inventory
Which of the following is an intangible asset?
Patents
Land
Bond
Stocks
Which of the following is not a non-current assets?
Machinery
Buildings
Long-term investments
Inventory
