Liabilities MCQ QuizOnline version Answer all Questions by Zena Christie 1 1. What are liabilities? a c) Debts owed to other parties b b) Money earned by the business c a) Things owned by the business d d) Goods for sale 2 2. Liabilities are classified as: a b) Current and Long-term Liabilities b c) Income and Expenses c d) Debtors and Creditors d a) Fixed and Current Assets 3 3. Current liabilities are debts that a a) Last forever b b) Are paid within one year c c) Are never paid d d) Are assets of the business 4 4. Which of the following is a Current Liability? a a) Mortgage b b) Land c d) Building d c) Bank overdraft 5 5. Which of the following is a Long-term Liability? a a) Employee wages b d) Creditors c c) Mortgage d b) Utilities 6 6. Long-term liabilities are also called: a a) Current liabilities b d) Current assets c c) Fixed assets d b) Non-current liabilities 7 7. Which of the following is NOT a Current Liability? a c) Long-term loan b d) Creditors c a) Utilities d b) Employee wages 8 8. A mortgage is usually paid: a b) Within one week b c) Over a long period of time c d) Immediately d a) Within one month 9 9. In simple terms, liabilities: a a) Put money into your pocket b b) Take money out of your pocket c d) Create profits d c) Increase stock 10 10. Which of the following is an example of a Long-term Liability? a a) Utilities bill b c) Bank overdraft c d) Long-term loan d b) Employee wages
