Balance Sheet Quiz 1

1.'Assets used by the business within a year' is the definition of: Select one: a. Retained Profits b. Current Assets c. Current Liabilities d. Fixed Assets (also known as Non-Current assets)
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2.Fixed Assets (also known as Non-current Assets)include: Select one: a. Property, inventory and cash at bank b. Cash at bank, machines and equipment c. Property, cash at bank and machines d. Property, machines and equipment
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3.Which of the following definitions most closely matches the definition of assets shown in the balance sheet of a business: Select one: a. Items owed by the business to other people and businesses b. Items owed by the business that need to be repaid to other businesses at sometime in the future c. Items owned by the business, some of which may be amounts owed by other businesses to 'our' business d. The employees of the business
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4.Which of the following items is not included in the given definition of Operating Working Capital: Select one: a. Inventory b. Payables c. Fixed Assets d. Receivables 5.A manufactured component can be classified as: Select one: a. Raw Material inventory only b. Work in progress inventory only c. Finished goods inventory only d. Raw materials, work in progress or finished goods inventory depending on the type of business
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6.The term cash as shown on the balance sheet represents: Select one: a. Just the cash held on site at the business b. Amounts held by the business which are readily available - such as cash on site and bank accounts c. The amount owed to the business by customers d. The amount owed by the business to suppliers
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7. Expenditure on Fixed Assets (also known as Non-current Assets) is known as: Select one: a. Revenue expenditure b. Fixed costs c. Capital expenditure d. Operating working capital
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8.Which of the following would not be classed as an asset? Select one: a. Land and buildings owned by the business. b. Inventory c. Rent paid and charged as an expense for the use of an off site warehouse. d. Pre-payment for the rent of the offsite warehouse for the next six months
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9. Receivables represent: Select one: a. Purchases from suppliers awaiting delivery b. What is owed to the business by customers c. What the business owes to suppliers d. Cash received from the bank 10. Payables represent: Select one: a. Money owed to the business by customers b. Payment made by the business to a customer prior to receiving a product or service. c. Inventory that has been paid for.</ d. The amount owed to suppliers for products and service which have been received by the business but have not been paid for.
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