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

Question 1

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

1. realisation convention.
2. historic cost convention.
3. matching convention.
4. money measurement convention.

Question 2

Identify the item that is an equity item.

1. drawings by the owner
2. loan from ABC Bank
3. bank overdraft
4. loan payable

Question 3

Identify the current liability.

1. wages owing
2. loan from B Buy (due in 4 months)
3. bill payable (due in 2 years)
4. A and B

Question 4
Intangible assets have no physical substance but still provide expected future benefits. Which of the following isnot an intangible asset?

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