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WorksheetsBalance Sheet Basics Quiz
Total questions: 15
Worksheet time: 8mins
Which of the following is an example of an asset?
Accounts payable
Short-term loan
Cash
Owner's draw
What is the main difference between current liabilities and long-term liabilities?
Current liabilities are due within one year, while long-term liabilities are due after one year.
Long-term liabilities are owed to the business owner, while current liabilities are owed to external creditors.
Current liabilities refer to the company’s assets, while long-term liabilities refer to expenses.
Long-term liabilities are paid off immediately, while current liabilities are spread over the year.
Which of the following is considered a non-current asset?
Cash
Inventories
Fixed asset
Accounts receivable
Which of the following would be classified as an intangible asset?
Machinery
Building
Goodwill
Accounts payable
What is meant by “accounts payable”?
The amount of money the business owes to others.
The amount of money customers owe the business.
The company’s assets that are available for sale.
Money that the business owner invests in the company.
Which of the following is considered a current liability?
Short-term loans
Fixed asset
Intangible asset
Retained earnings
What are "retained earnings"?
The total amount of money the business owner has invested in the business.
The net income of the business that has been kept (not distributed to owners).
The total debt the company owes to creditors.
The amount of money the business owes to its customers.
Which of the following describes "net income"?
The total revenue of a business.
The total debt the business owes.
The profit made after subtracting expenses from revenue.
The amount of money the business owner withdraws from the business.
What is the difference between current and non-current assets?
Current assets are expected to be used or sold within one year, while non-current assets are held for longer periods.
Non-current assets are less valuable than current assets.
Current assets are owned by the business, while non-current assets are owed to others.
Non-current assets include only cash, while current assets include inventories.
If a company takes out a short-term loan, how should this be classified?
Asset
Equity
Liability
Revenue
Why is understanding assets, liabilities, and equity important in accounting?
To track how much the business owner withdraws.
To understand the company’s profitability.
To determine the company’s financial position and ability to pay debts.
To calculate how much the business spends on salaries.
What is the net income of the business that has been kept and not distributed to owners called?
Dividends
Retained earnings
Revenue
Capital
How is profit calculated after subtracting expenses from revenue?
Gross profit
Net profit
Operating profit
Contribution margin
What are current assets expected to be used or sold within?
One month
Six months
One year
Five years
What is a building considered in accounting terms?
Liability
Current asset
Non-current asset
Revenue
