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WorksheetsRecognize Assets, Liabilities, Exp, Equity and Income Quiz
Total questions: 10
Worksheet time: 5mins
Which of the following is considered a current asset?
Land
Inventory
Equipment
Building
Which type of liability is typically due within one year?
Long-term debt
Current liabilities
Deferred tax liabilities
Contingent liabilities
Which of the following is an example of an operating expense?
Interest expense
Depreciation expense
Cost of goods sold
Rent expense
Which component of equity represents the initial investment made by shareholders?
Retained earnings
Share capital
Treasury shares
Dividends
Which financial statement shows the relationship between assets, liabilities, and equity?
Income statement
Statement of cash flows
Balance sheet
Statement of changes in equity
Which of the following is a non-current asset?
Cash
Accounts receivable
Machinery
Prepaid expenses
Which of the following is classified as a long-term liability?
Accounts payable
Bank overdraft
Bonds payable
Accrued expenses
What is the primary purpose of recording expenses in accounting?
To increase assets
To decrease liabilities
To measure profitability
To increase equity
Which of the following is not a component of equity?
Retained earnings
Share capital
Accounts payable
Treasury shares
How are the income statement and balance sheet related?
The income statement shows the financial position at a point in time, while the balance sheet shows performance over a period.
The income statement shows performance over a period, while the balance sheet shows the financial position at a point in time.
Both show performance over a period.
Both show the financial position at a point in time.
