Back to the full dot-point answer
SingaporeAccountingQuick questions
The Accounting Environment and Equation
Quick questions on Assets, liabilities and owner's equity explained: O-Level Principles of Accounts
5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What are classifying assets?Show answer
The order on the statement of financial position lists non-current assets first, then current assets, with the most liquid (cash) usually shown last among current assets in the standard format.
What is the twelve-month test?Show answer
The line between current and non-current is twelve months from the reporting date. An asset is current if it will turn into cash within a year; a liability is current if it falls due within a year. A long-term loan is non-current, except for any instalment due in the next twelve months.
What is q1?Show answer
Define an asset and a liability in one sentence each. [2 marks]
What is q2?Show answer
Classify: motor vehicle, trade payables, inventory, six-year mortgage. [4 marks]
What is q3?Show answer
A business has total assets of \80\,000\. State owner's equity and explain what it represents. [3 marks]
Have a question we have not covered?
This dot-point answer is short enough that we have not extracted many short questions yet. Read the full dot-point answer or ask Mo, our study assistant, in the chat for follow ups.