Accounting Basics Quiz - Assets | Attempts: 228

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| By Frankwood

Frankwood

Community Contributor

Quizzes Created: 4 | Total Attempts: 13,202

Questions: 8 | Attempts: 228 | Updated: Dec 29, 2023

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The Accounting Basics Quiz on Assets is designed to evaluate your comprehension of fundamental accounting concepts related to assets. This quiz covers a variety of topics, including the classification of assets, the accounting equation, and the impact of asset transactions on financial statements.

Participants can expect questions that assess their knowledge of different types of assets, such as current assets and non-current assets, as well as their understanding of how asset transactions affect the balance sheet. The quiz may cover topics like depreciation, impairment, and the overall management of assets within an accounting framework.

Whether you are a student learning Read moreaccounting principles or a professional seeking to reinforce your understanding of asset-related concepts, this quiz offers an engaging way to test your knowledge and enhance your proficiency in handling assets within the realm of accounting.

Questions and Answers

1.

A(n) ................ is something that has future or potential value.
- A.
  
  Liability
- B.
  
  Asset
- C.
  
  Stockholder
Correct Answer
B. Asset

Explanation
An asset is something that has future or potential value. It can be a physical object, such as property or equipment, or it can be an intangible item, such as intellectual property or goodwill. Assets are typically owned or controlled by an individual or an organization and can be used to generate income or provide future benefits.

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2.

Pens, paper and printing cartridges are all examples of prepayments
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
They are all examples of supplies

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3.

Which one of the following items is not an asset?
- A.
  
  Prepayment of rent
- B.
  
  Inventory
- C.
  
  Bank Loan
- D.
  
  Building
Correct Answer
C. Bank Loan

Explanation
A bank loan is not considered an asset because it represents a liability for the borrower. It is a debt that needs to be repaid to the bank, and therefore it does not have any intrinsic value or generate future economic benefits for the borrower. In contrast, the other options listed - prepayment of rent, inventory, and building - are all tangible or intangible assets that have value and can contribute to the financial position of an individual or a company.

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4.

What is the main differnce between supplies and inventory?
5.

Credit card receipts are examples of ACOUNTS PAYABLE
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
They are examples of ACCOUNTS RECEIVABLE

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1
0
6.

Which of the following items below would be classified as Long Life Assets?
- A.
  
  Land and Buildings
- B.
  
  Inventory
- C.
  
  Motor Vehicles
- D.
  
  Supplies
- E.
  
  Fixtures and Fitings
- F.
  
  Cash at bank
Correct Answer(s)
A. Land and Buildings
C. Motor Vehicles
E. Fixtures and Fitings

Explanation
Inventory, Supplies and Cash/bank are short term assets or Current Assets.

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7.

Insurance paid in advance is known as a

Correct Answer(s)
prepayment
prepayments
prepay
prepaid

Explanation
Insurance paid in advance is known as a prepayment. This term refers to the act of paying for insurance coverage before it is actually needed or utilized. It is a common practice in the insurance industry for policyholders to make prepayments to ensure continuous coverage and avoid any lapses in their insurance policies. The terms "prepayments," "prepay," and "prepaid" are all related to the concept of making advance payments for insurance services.

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4
8.

How would you define an asset?

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Current Version
Dec 29, 2023

Quiz Edited by
ProProfs Editorial Team
Dec 26, 2010

Quiz Created by
Frankwood

Accounting Basics Quiz - Assets

A(n) ................ is something that has future or potential value.

Pens, paper and printing cartridges are all examples of prepayments

Which one of the following items is not an asset?

What is the main differnce between supplies and inventory?

Credit card receipts are examples of ACOUNTS PAYABLE

Which of the following items below would be classified as Long Life Assets?

Insurance paid in advance is known as a

How would you define an asset?