Financial Accounting Quiz
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Questions and Answers

Which of the following statements is correct about assets?

  • An asset is the residual interest in the assets of the entity after deducting all its liabilities
  • An asset is a present economic resource controlled by the entity as a result of past events (correct)
  • An asset is a future obligation of the entity to transfer an economic resource as a result of past events
  • An asset is a decrease in assets, or an increase in liabilities, that results in an increase in equity

    • Which of the following statements is correct about liabilities?

  • A liability is a present economic resource controlled by the entity as a result of past events
  • A liability is the residual interest in the assets of the entity after deducting all its liabilities
  • A liability is a decrease in assets, or an increase in liabilities, that results in an increase in equity
  • A liability is a future obligation of the entity to transfer an economic resource as a result of past events (correct)

    • Which of the following statements is correct about equity?

  • Equity is a present economic resource controlled by the entity as a result of past events
  • Equity is a future obligation of the entity to transfer an economic resource as a result of past events
  • Equity is a decrease in assets, or an increase in liabilities, that results in an increase in equity
  • Equity is the residual interest in the assets of the entity after deducting all its liabilities (correct)

    • Which of the following statements is correct about income?

    <p>Income is a decrease in assets, or an increase in liabilities, that results in an increase in equity</p> Signup and view all the answers

    Which of the following statements is correct about financial statements?

    <p>Financial statements provide information about the reporting entity's financial position and financial performance</p> Signup and view all the answers

    Which of the following is the current tax rate for income tax on a salary?

    <p>20%</p> Signup and view all the answers

    What is the tax year end?

    <p>April 5th</p> Signup and view all the answers

    When you sell your home and make a profit, will you be taxed on this?

    <p>It depends on the profit amount</p> Signup and view all the answers

    What does PAYE stand for?

    <p>Pay As You Earn</p> Signup and view all the answers

    When you purchase your home, will you pay any tax?

    <p>No, never</p> Signup and view all the answers

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