Question 1

Which of the following are normally seen as tangible assets?

Accepted Answer

A)  Royalty agreements 
B)  Intellectual property 
C)  Patents and trademarks 
D)  Office furniture 
E)  None of the above 
A)  Royalty agreements 
B)  Intellectual property 
C)  Patents and trademarks 
D)  Office furniture 
E)  None of the above D

Question 2

Which of the following is a non-current asset?

Accepted Answer

A)  One that is not up to date 
B)  One that is held for the long term to support the operations of the enterprise 
C)  One that is expected to be turned into cash in the next twelve months 
D)  One that is part of the operating cycle 
E)  One that is held primarily for the purpose of being traded 
A)  One that is not up to date 
B)  One that is held for the long term to support the operations of the enterprise 
C)  One that is expected to be turned into cash in the next twelve months 
D)  One that is part of the operating cycle 
E)  One that is held primarily for the purpose of being traded B

Question 3

A business owner has provided you with the following information on their market trading business. Flat - leasehold £150000, inventory of goods £8000 bought for next market, van £2000, bank overdraft £700, stall £1 500. What is the owners' equity?

Accepted Answer

A)  £161500 
B)  £11500 
C)  £160800 
D)  £10800 
E)  None of the above 
A)  £161500 
B)  £11500 
C)  £160800 
D)  £10800 
E)  None of the above C

Question 4

Which of the following best describes the liabilities of an enterprise?

Accepted Answer

A)  What the enterprise has been invoiced for 
B)  Everything that the enterprise owes to anybody 
C)  Everything that the enterprise owes to the owners 
D)  Everything that the enterprise owes to anybody other than the owners 
A)  What the enterprise has been invoiced for 
B)  Everything that the enterprise owes to anybody 
C)  Everything that the enterprise owes to the owners 
D)  Everything that the enterprise owes to anybody other than the owners

Question 5

The statement of financial position shows only the assets owned and controlled by the enterprise.

Accepted Answer

A) True 
 B)False

Question 6

The statement of financial position shows the assets and the liabilities of the enterprise.

Accepted Answer

A) True 
 B)False

Question 7

The statement of financial position includes all the assets controlled by the business.

Accepted Answer

A) True 
 B)False

Question 8

The statement of financial position includes only the assets owned by the owner.

Accepted Answer

A) True 
 B)False

Question 9

The statement of financial position includes all the assets owned by the owner and the business.

Accepted Answer

A) True 
 B)False

Question 10

The statement of financial position measures the change in wealth over a specified time period.

Accepted Answer

A) True 
 B)False

Question 11

The statement of financial position includes only the assets owned by the business.

Accepted Answer

A) True 
 B)False

Question 12

A company car is a liability.

Accepted Answer

A) True 
 B)False

Question 13

The reason owners' assets and business assets must be accounted for separately is because:

Accepted Answer

A)  They are different legal entities 
B)  They are treated differently for tax purposes 
C)  Enterprises are always set up as limited companies 
D)  To do so conforms with the business entity principle 
A)  They are different legal entities 
B)  They are treated differently for tax purposes 
C)  Enterprises are always set up as limited companies 
D)  To do so conforms with the business entity principle

Question 14

Which of the following definitions best describes an asset?

Accepted Answer

A)  Something the business owns 
B)  Something the business controls 
C)  Something arising from a past transaction where the future benefits will come to the business 
D)  Something the business owns which will provide future benefits 
A)  Something the business owns 
B)  Something the business controls 
C)  Something arising from a past transaction where the future benefits will come to the business 
D)  Something the business owns which will provide future benefits

Question 15

Money owed to the bank is an asset of the business.

Accepted Answer

A) True 
 B)False

Question 16

The statement of financial position accurately measures the wealth of an enterprise.

Accepted Answer

A) True 
 B)False

Which of the following are normally seen as tangible assets?

Which of the following is a non-current asset?

A business owner has provided you with the following information on their market trading business. Flat - leasehold £150000, inventory of goods £8000 bought for next market, van £2000, bank overdraft £700, stall £1 500. What is the owners' equity?

Which of the following best describes the liabilities of an enterprise?

The statement of financial position shows only the assets owned and controlled by the enterprise.

The statement of financial position shows the assets and the liabilities of the enterprise.

The statement of financial position includes all the assets controlled by the business.

The statement of financial position includes only the assets owned by the owner.

The statement of financial position includes all the assets owned by the owner and the business.

The statement of financial position measures the change in wealth over a specified time period.

The statement of financial position includes only the assets owned by the business.

A company car is a liability.

The reason owners' assets and business assets must be accounted for separately is because:

Which of the following definitions best describes an asset?

Money owed to the bank is an asset of the business.

The statement of financial position accurately measures the wealth of an enterprise.

Introduction to Accounting

Wealth and the Measurement of Profit

The Income Statement and the Cash Flow Statement

Introduction to the Worksheet

Inventory

Amounts Receivable and Amounts Payable

Non-Current Assets, Fixed Assets, and Depreciation

Financing and Business Structures

Cash Flow Statements

Final Accounts and Company Accounts

Financial Statement Analysis

Internal Users and Internal Information

Planning and Control

Cost Behaviour and Cost-Volume-Profit Analysis

Accounting for Overheads and Product Costs

Accounting for Decision-Making: When There Are No Resource Constraints

Accounting for Decision-Making: Resource Constraints and Decisions Which Are Mutually Exclusive

Budgets

Investment Decisions

Management of Working Capital

Filters

Exam 3: The Measurement of Wealth

Which of the following are normally seen as tangible assets?

Which of the following is a non-current asset?

A business owner has provided you with the following information on their market trading business. Flat - leasehold £150000, inventory of goods £8000 bought for next market, van £2000, bank overdraft £700, stall £1 500. What is the owners' equity?

Which of the following best describes the liabilities of an enterprise?

The statement of financial position shows only the assets owned and controlled by the enterprise.

The statement of financial position shows the assets and the liabilities of the enterprise.

The statement of financial position includes all the assets controlled by the business.

The statement of financial position includes only the assets owned by the owner.

The statement of financial position includes all the assets owned by the owner and the business.

The statement of financial position measures the change in wealth over a specified time period.

The statement of financial position includes only the assets owned by the business.

A company car is a liability.

The reason owners' assets and business assets must be accounted for separately is because:

Which of the following definitions best describes an asset?

Money owed to the bank is an asset of the business.

The statement of financial position accurately measures the wealth of an enterprise.

Introduction to Accounting

Wealth and the Measurement of Profit

The Income Statement and the Cash Flow Statement

Introduction to the Worksheet

Inventory

Amounts Receivable and Amounts Payable

Non-Current Assets, Fixed Assets, and Depreciation

Financing and Business Structures

Cash Flow Statements

Final Accounts and Company Accounts

Financial Statement Analysis

Internal Users and Internal Information

Planning and Control

Cost Behaviour and Cost-Volume-Profit Analysis

Accounting for Overheads and Product Costs

Accounting for Decision-Making: When There Are No Resource Constraints

Accounting for Decision-Making: Resource Constraints and Decisions Which Are Mutually Exclusive

Budgets

Investment Decisions

Management of Working Capital

Filters