1. Which of the items in the following list are liabilities and which of them are assets?

(a) Motor Vehicles (Fixed assets)

(b) Amounts owed to us by customers (Current Assets)
(c) Land (Fixed Assets)
(d) Bank overdraft (Current Liabilities)
(e) Inventory of goods held for sale (Current Assets)
(f) Amounts owed by us to suppliers (Current liabilities)

2. Classify the following items into liabilities and assets.

(a) Computers (Fixed Asset)
(b) Buildings (Fixed Assets)
(c) Account payable (creditors) (Current liabilities)
(d) Inventory (Current Assets)
(e) Account receivable (Debtor) (Current Assets)
(f) Cash in bank (Current Assets)
(g) Bank overdraft (Current Liabilites)
(h) Loan from bank (Non-Current Liabilities)
(i) Vans (Fixed Assets)

3. State which of the following are wrongly classified.

Assets Liabilities
Loan from K. Jones Delivery Van
Bank overdraft Accounts payable
Account receivable Computer equipment
Warehouse Machinery
Office Furniture Cash in hand
 4. Which of the following are shown under the wrong headings?

Assets Liabilities
Cash at bank Bank overdraft
Fixtures and fittings Equipment
Account payable Computers
Premises Loan from building society
Inventory
Account receivable
Capital
Accounting => Accounting users => external and internal
accounting group
Revenue => two => major revenue => sales
Other revenue => discount received, rent received, interest received

Expense => two => major expense => purchases for resale
Other expenses => wages and salaries, light and heat, electricity, rent, petrol expenses,
maintenance cost…………..carriage outwards/carriage inwards
Asset =>two => fixed assets or non-current assets, => premises, land, motor vehicles,
furniture and fitting or fixtures and fitting, computer
current assets => bank, inventory, cash, account receivables (debtors)
Liabilities => two => current =>account payables (creditors), bank overdraft
long-term => long term loan, mortgage, debentures, bonds
Capital