Identification of Types of Assets And Liabilities - SS1 Accounting Past Questions and Answers - page 1
1
What are current assets?
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A
Assets that can be easily converted into cash within a year
B
Long-term assets that a company owns and uses to generate income
C
Assets that have no physical form
D
Assets that represent investments or financial claims
2
What are fixed assets?
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A
Assets that can be easily converted into cash within a year
B
Long-term assets that a company owns and uses to generate income
C
Assets that have no physical form
D
Assets that represent investments or financial claims
3
What are current liabilities?
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A
Short-term debts that a company owes and must pay within a year
B
Debts that a company owes and must pay back over a period of more than one year
C
Liabilities that may arise in the future, depending on the outcome of certain events
D
Liabilities that represent the capital that a company has raised from investors
4
What are long-term liabilities?
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A
Short-term debts that a company owes and must pay within a year
B
Debts that a company owes and must pay back over a period of more than one year
C
Liabilities that may arise in the future, depending on the outcome of certain events
D
Liabilities that represent the capital that a company has raised from investors
5
What are contingent liabilities?
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A
Short-term debts that a company owes and must pay within a year
B
Debts that a company owes and must pay back over a period of more than one year
C
Liabilities that may arise in the future, depending on the outcome of certain events
D
Liabilities that represent the capital that a company has raised from investors
6
Why is it important for a company to have a mix of different types of assets?
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7
What is the difference between current and long-term liabilities?
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