Choose the correct answer (multiple choice)

QUESTION 1

1. Intangible assets have no physical substance but still provide expected future benefits. Which of the following is not an intangible asset?

   		brand name
   		patent
   		goodwill
   		None of the above, i.e., all are intangible assets.

1 points

QUESTION 2

1. If liabilities are $45,000 and equity is $68,900 assets are:

   		$23,900
   		$23,100
   		$113,900
   		$113,100

1 points

QUESTION 3

1. The accounting convention that requires the activities of the business to be kept separate from the activities of the owner is the:

   		conservatism convention.
   		business entity convention.
   		dual aspect convention.
   		accounting period convention.

1 points

QUESTION 4

1. Which one is an asset?

   		loan from ABC Ltd.
   		bank overdraft
   		accrued expenses
   		plant and equipment

1 points

QUESTION 5

1. Which of these is not always a characteristic of an asset?

   		expected future economic benefits
   		legal ownership by the entity
   		ability of the benefit to be measured in money terms
   		exclusive control of the economic benefits

1 points

QUESTION 6

1. Another name for accounts receivable is:

   		debtors
   		receivables
   		accounts payable
   		A and B

1 points

QUESTION 7

1. The accounting convention that requires items in the balance sheet to be valued at their acquisition cost, is the:

   		realisation convention.
   		historic cost convention.
   		matching convention.
   		money measurement convention.

1 points

QUESTION 8

1. On 31 December 2008 a new machine with a useful life of 6 years and an estimated residual value of zero was purchased by a business at a cost of $30,000. The amount of depreciation expense charged for the year ended 31st December 2010, using the reducing balance method at a rate of 30% per annum, is:

   		$6,300
   		$1,800
   		$9,000
   		$5,000

1 points

QUESTION 9

1. Which accounting principle requires the same depreciation method to be used over consecutive accounting periods?

   		consistency
   		conservatism
   		reliability
   		historical cost