2024-10-18 Financial Management

Which of the following is NOT classified as a current asset?

• Cash

• Accounts Receivable

• Equipment

• Inventory

Which of the following is considered an asset?

• Bank Loan

• Machinery

• Accounts Payable

• Shareholder Dividends

Which of the following is classified as a non-current liability?

• Accounts Payable

• Mortgage Loan

• Salaries Payable

• Cash

Which of the following is an example of a fixed cost?

• Raw materials

• Direct labour

• Rent

• Commission

What is the formula for the accounting equation?

• Assets = Liabilities - Equity

• Liabilities = Assets + Equity

• Assets = Liabilities + Equity

• Liabilities = Assets - Equity

Which of the following is a liability?

• Retained Earnings

• Accounts Payable

• Cash

• Machinery

Which of the following is considered a non-current asset?

• Cash

• Inventory

• Land

• Accounts Payable

Which financial statement reflects the cash inflows and outflows over a period?

• Income Statement

• Statement of Retained Earnings

• Cash Flow Statement

• Balance Sheet

What does equity represent in the accounting equation?

• The owner's claim on the company's assets

• The company’s liabilities

• The company’s debts

• The company’s total revenue

If a company has assets of R500,000 and liabilities of R300,000, what is the value of its equity?

• R200,000

• R300,000

• R500,000

• R700,000