Accounting Terms Quiz-1

Accounting Terms Quiz-1

Quiz

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1. Which of the following is an example of a non-current asset that is not depreciated?
   1.   Land held for future use
   2.   Office Furniture
   3.   Delivery Trucks
   4.   Computer Equipment
2. Which of the following is not a loose tool?
   1.   Hammer
   2.   Screwdriver
   3.   An axe
   4.   Wrench
3. Which of the following is the correct definition of an entity?
   
   1.   A thing or object in the real world that is distinguishable from all other objects.
   2.   A set of data that is stored together in a database.
   3.   A person, place, thing, or event that is represented in a database.
   4.   A relationship between two or more entities.
4. Which of the following is not an expenditure?
   
   1.   Selling expenses
   2.   Administrative expenses
   3.   Cost of goods sold
   4.   Interest expense
5. Which of the following is NOT considered a non-current asset?
   1.   Property, Plant, and Equipment
   2.   Accounts Receivable
   3.   Intangible Assets
   4.   Investments in Other Companies
6. Which of the following is the correct definition of insolvent?
   1.   A sole proprietor who is unable to pay their debts as they become due.
   2.   A sole proprietor who has no assets.
   3.   A sole proprietor who has more liabilities than assets.
   4.   All of the above.
7. Which of the following is the correct definition of a bad debt?
   1.   A debt that is unlikely to be paid in full.
   2.   A debt that is past due and has not been paid.
   3.   A debt that is disputed by the debtor.
   4.   All of the above.
8. Which of the following is not a fictitious asset?
   1.   Preliminary expenses
   2.   Discount on issue of shares
   3.   Loss on issue of debentures
   4.   Organization expenses
9. What are the consequences of a sole proprietor being declared insolvent?
   1.   The sole proprietor may have to file for bankruptcy.
   2.   The sole proprietor's creditors may be able to seize their assets.
   3.   The sole proprietor may be personally liable for their debts.
   4.   All of the above.
10. Which of the following is not a revenue?
    1.   Sales revenue
    2.   Interest revenue
    3.   Dividend revenue
    4.   Gain on sale of assets
11. A contingent liability is:
    1.   A liability that is likely to be incurred.
    2.   A liability that is possible to be incurred.
    3.   A liability that is remote to be incurred.
    4.   A liability that is neither likely nor possible to be incurred.
12. Which of the following is not a contingent liability?
    1.   A guarantee
    2.   A pending lawsuit
    3.   A warranty
    4.   A deferred tax liability
13. How are contingent liabilities disclosed in the financial statements?
    1.   They are shown as a separate item on the balance sheet.
    2.   They are shown as a deduction from the total assets on the balance sheet.
    3.   They are footnoted in the financial statements.
    4.   They are not disclosed in the financial statements.
14. Which of the following statements is true about revenue?
    1.   Revenue is always equal to the amount of cash received from customers.
    2.   Revenue is always equal to the amount of expenses incurred.
    3.   Revenue is always equal to the profit for the period.
    4.   Revenue is always equal to the net income for the period.
15. Which of the following is the correct definition of equity?
    1.   The amount of money that a company has left after all liabilities have been paid.
    2.   The amount of money that a company's owners have invested in the company.
    3.   The amount of money that a company's shareholders have invested in the company.
    4.   The amount of money that a company's creditors have invested in the company.
16. Which of the following is the correct definition of expenditure?
    1.   The amount of money spent by a company on its day-to-day operations.
    2.   The amount of money that a company has spent during a specific period of time.
    3.   The amount of money that a company has left after all revenues have been received.
    4.   The amount of money that a company expects to spend in the future.
17. Which of the following is the correct treatment of fictitious assets in the financial statements?
    1.   They are shown as a separate item on the balance sheet.
    2.   They are shown as a deduction from the total assets on the balance sheet.
    3.   They are expensed immediately in the income statement.
    4.   They are amortized over their useful life.
18. Which of the following is the correct definition of revenue?
    1.   The amount of money received by a company from the sale of goods or services.
    2.   The amount of money that a company has earned during a specific period of time.
    3.   The amount of money that a company has left after all expenses have been paid.
    4.   The amount of money that a company expects to earn in the future.
19. Which of the following is the correct definition of loose tools?
    1.   Tools that are not attached to a specific machine or piece of equipment.
    2.   Tools that are used for general-purpose tasks.
    3.   Tools that are not part of a set.
    4.   All of the above.
20. Non-current assets are typically expected to be converted into cash or used up within:
    1.   One year
    2.   Two years
    3.   The company's operating cycle
    4.   More than one year