Classification of Assets and Liabilities

Q.

Which of the Following Is Not a Current Asset?

1. Supplies

2. Land

3. Accounts Receivable

4. Prepaid Insurance

Q.

Why goodwill considered as an intangible asset but not a fictitious asset?

Q. Which of the following are Intangible Assets ?

1. Goodwill
2. Patents
3. Copyrights/Trademark
4. All of the above

Q.

Is an intangible asset a fixed asset?

Q.

What is the normal balance for liability accounts?

1. Debit

2. Credit

3. Either A or B
4. None of these

Q.

What are intangible fixed assets?

Q.

What are the 10 steps in the accounting cycle?

Q.

Furniture is a/an:

1. Current Asset

2. Fictitious Asset

3. Tangible Fixed Asset

4. Intangible Asset

Q.

Operating cycle can be delayed by

Q.

How to prepare a fixed asset register?

Q.

Is computer software a fixed asset?

Q. Loan taken from outsider which is repayable in the next 13 months will be classified as a/an liability.

1. other current
2. current
3. non-current
4. other non-current

Q.

A company has sold 10, 000 tonnes of steel to its customer. The sale contract provides for a normal credit period of three months. The company’s operating cycle is six months. However, the company does not expect to receive the payment within twelve months from the reporting date. it shall be classified as___

1. Current assets

2. Current liabilities

3. None of these

4. Non current assets

Q. What are the types of asset ?

1. Fixed asset
2. Fictitious asset
3. All of the above
4. Current asset

Q. Investment maturing within two months will be classified as an asset in the balance sheet.

1. current
2. non-current
3. movable
4. immovable

Q.

A company has excess finished goods inventory that it does not expect to realize within the company’s operating cycle of fifteen months. It shall be classified as___

1. Current assets

2. Non current assets

3. Current liabilities

4. None of these

Q. What is UNCOMMON in trial balance?

1. Statement of assets and liabilities
2. Balances of personal, real and nominal account are shown
3. Both b & c
4. Closing stock appears in trial balance

Q. The credit balance in the bank account is _________.

1. An expense
2. An asset
3. A liability
4. Capital
5. A revenue

Q. Which of the following is/are not a fixed asset?

1. Fixed deposit in bank
2. Both (b) and (c)
3. Both (a) and (c)
4. Stock
5. Vehicle

Q. The car held as an asset by an individual for 5 years will be classified as a/an asset in the balance sheet.

1. current
2. non-current
3. movable
4. immovable

Q.

_______ would include items such as trade payables, employee salaries and other operating costs that are expected to be settled in the company’s normal operating cycle.

1. Current assets

2. Current liabilities

3. Is not classified

4. None of these

Q. Which of the following statements are correct?
I. Inventory includes raw materials, finished goods and work-in-progress
II. Inventory is a part of the working capital
III. Inventory includes goods likely to be purchased.

1. I, II and III
2. II and III
3. I and III
4. I and II

Q. Objective type questions :-
Answer in one sentence only.

What is closing stock?

Q. Which of these accounts can have credit balance also

1. Cash in hand A/c
2. Cash at Bank A/c
3. Stock in trade A/c
4. Accounts receivable A/c

Q. Write one word/term/phrase which can substitute each of the following

The debentures where a charge is created on the assets of company.

Q.

It is necessary that the balance pertaining to each item of assets and liabilities contained in the Balance Sheet be split into its current and non-current portions on the reporting date.

1. True

2. False

3. Partially True
4. None of these

Q. In _______, approach assets which are to be used for long term in the business and are not meant to be sold are presented first and assets which are most liquid such as cash in hand, are presented at the bottom.

1. Permanence order
2. None of the above
3. Liquidity order
4. Alphabetical order

Q. _______ is the principal book of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded.

1. Ledger
2. Journal
3. Sales book
4. Purchases return books