Accounting Multiple Choice Question – 5 February 2019

A firm’s fixed assets are ……….. ?

Select ONE answer:

1. all of its assets which have a long life and a substantial value
2. all of its assets which have an expected useful economic life of more than one year, and were purchased in order to be used in the business on a continuing basis rather than solely for resale
3. all assets which have a physical substance
4. none of the above

Show your workings to arrive at your answer, and explain and justify your reasons:

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

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 2
1 – fixed assets do not have to be of substantial value
3 – fixed assets can be intangible such as patents and trademarks

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