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Recognize Assets, Liabilities, Exp, Equity and Income Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which of the following is considered a current asset?

a)

Land

b)

Inventory

c)

Equipment

d)

Building

2.

Which type of liability is typically due within one year?

a)

Long-term debt

b)

Current liabilities

c)

Deferred tax liabilities

d)

Contingent liabilities

3.

Which of the following is an example of an operating expense?

a)

Interest expense

b)

Depreciation expense

c)

Cost of goods sold

d)

Rent expense

4.

Which component of equity represents the initial investment made by shareholders?

a)

Retained earnings

b)

Share capital

c)

Treasury shares

d)

Dividends

5.

Which financial statement shows the relationship between assets, liabilities, and equity?

a)

Income statement

b)

Statement of cash flows

c)

Balance sheet

d)

Statement of changes in equity

6.

Which of the following is a non-current asset?

a)

Cash

b)

Accounts receivable

c)

Machinery

d)

Prepaid expenses

7.

Which of the following is classified as a long-term liability?

a)

Accounts payable

b)

Bank overdraft

c)

Bonds payable

d)

Accrued expenses

8.

What is the primary purpose of recording expenses in accounting?

a)

To increase assets

b)

To decrease liabilities

c)

To measure profitability

d)

To increase equity

9.

Which of the following is not a component of equity?

a)

Retained earnings

b)

Share capital

c)

Accounts payable

d)

Treasury shares

10.

How are the income statement and balance sheet related?

a)

The income statement shows the financial position at a point in time, while the balance sheet shows performance over a period.

b)

The income statement shows performance over a period, while the balance sheet shows the financial position at a point in time.

c)

Both show performance over a period.

d)

Both show the financial position at a point in time.