Accounting Multiple Choice Question – 1 September 2018

Which of the following is a liability of a firm?

Select ONE answer:

1. A building owned by a firm.
2. Cash in the firm’s safe.
3. Money owed to the firm by its debtors.
4. Money which the firm has borrowed and has not yet repaid.

State one other type of liability that a business might have:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 4 – liabilities are obligations to pay amounts of money. 1 – a building owned by a firm is an asset / resource. 2 – cash in the safe is an asset / resource. 3 – money owed by debtors is an asset / resource.

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