Accounts Q1

Which of the following is NOT a non-current asset?

• Building

• Machinery

• Cash in bank

• Motor vehicle

Which group of people may be interested in viewing a company's financial statements to ensure that they are profitable enough to repay money owed to them?

• Government

• Employees

• Customers

• Suppliers

Which of the following describes the accounting equation?

• Assets + capital = liabilities

• Assets = liabilities + capital

• liabilities + assets = capital

• liabilities - capital = assets

Profit is important for several reasons. Which of the following is NOT a reason for which profit may be used?

• Building roads

• Expansion

• Research and development

• Payment to shareholders for investment

Liabilities are amounts that the company

• Owns

• Has in their bank account

• Is going to receive

• owes

Trade receivables is otherwise known as

• Suppliers

• Customers

• Credit customers

• Owners

Non-current assets are bought with the intention of being used in the business for what period of time?

• 6 months

• more than one year

• one year

• 10 years

Which of the following is NOT a current asset?

• Cash in hand

• Cash in bank

• Motor vehicle

• Trade receivables

Capital refers to the money invested into the business by

• employees

• customers

• owners

• the government

Book keeping is different from Accounting, as book keeping focuses on

• recording financial transactions on a day to day basis

• preparing financial statements

• storing books

• reviewing financial data