N5 Accounting SoFP

A non-current asset is an item owed by the business for a period of more than a year.

• True

• False

Which of the following are examples of non-current assets?

• Property

• Fixtures and Fittings

• Cash

• Machinery

A current asset is an item owned by the business for a period of less than a year.

• True

• False

Which of the following is NOT an example of a current asset?

• Cash

• Equipment

• Inventory

• Trade Receivables

Motor vehicles are an example of a non-current asset.

• True

• False

A current liability is...

• An item owned by the business for a period of more than a year

• An item owed by the business for a period of more than a year

• An item owed by the business for a period of less than a year

A bank overdraft is an example of a current liability.

• True

• False

Non-current liabilities are...

• Long term debts and will usually take many years to re-pay

• Short term debts that will be paid back in less than a year

Equity is the money provided by the owner in order to start the business

• True

• False

Trade Payables are an example of...

• Current assets

• Current liabilities

• Non-current assets

• Non-current liabilities