Commerce MCQ for PPSC FPSC KKPSC BPSC SPSC Practice Test 8

1- A proper and fair planning of expenditures helps us to ensure proper use of:

A). Our Liabilities

B). An income✔️

C). Our expenses

D). Assets

2-The need for keeping a record of income and expenditures in a clear and systematic manner has given rise to the subject of:

A). Book keeping

B). Accounting Cycle✔️

C). Manufacturing cycle

D). None of the above

3- It is possible to increase the amount of saving through proper management and effective control of:

A). The family liabilities

B). The family income✔️

C).The family assets

D). None of the above

4- It is all the more necessary for an organization or a concern to keep:

A). Improper accounts

B). Proper accounts✔️

C). Incomplete records

D). None of the above

5- If proper books of accounts are not kept in a business the amount of profit:

A). Can be ascertained

B). Cannot be ascertained✔️

C). Easily ascertained

D). None of the above

6- Accounting is often referred to as the language of the:

A). Business✔️

B). Schools

C). Daily life

D). Information technology

7- Accounting was developed by people, who were seeking better ways to gather and report useful information about:

A). Families

B). Individual

C). Organizations✔️

D). Friends

8- The act of collecting, processing, reporting, analyzing, interpreting and projecting financed information is called:

A). Economics

B). Accounting✔️

C). Information technology

D). Introduction to business

9- Accounting principles, are generally based on:

A). Practicability✔️

B). Subjectivity

C). Convenience in recording

D). None of the above

10- The system of recording transactions based on duel concept is called:

A). Double account system

B). Double entry system✔️

C). Single entry system

D). Management system

11- No accounting is possible for an event or transaction which is not measurable terms of:

A). Money✔️

B). Goods

C). Units

D). Ethical values

12- The stage under which transactions are recorded chronologically in the books of accounts is called:

A). Summarizing

B). Classifying

C). Recording✔️

D). None of the above

13- The stage under which the transactions of the same or similar nature are classified and recorded separately is known as:

A). Classifying✔️

B). Recording

C). Interpretation

D). None of the above

14- The stage under which all necessary dates and information’s are summarized on the basis of classified record of transactions and communicated to management and other interested persons is called as:

A). Recording

B). Summarizing✔️

C). Interpretation

D). None of the above

15- Any dealing between two persons or things is a:

A). Transaction✔️

B). Introduction

C). Meeting

D). Seminar

16- When cash is paid or received as a result of an exchange, the transaction is said to be a:

A). Sale transaction

B). Cash transaction✔️

C). Credit transaction

D). None of the above

17- When the payment or receipt of cash is postponed for a future date, this transaction is said to be:

A). Credit transaction✔️

B). Cash transaction

C). Introduction

D). None of the above

18- Any activity undertaken for the purpose of earning profit is called:

A). Performance

B). Dealing

C). Business✔️

D). Duties

19- The owner of the business is known as:

A). Sale man

B). Agent

C). Proprietor✔️

D). Employee

20- The amount with which the trader starts his business is known as:

A). Drawings

B). Capital✔️

C). Stock

D). Purchases

21-The cash or goods taken away by the proprietor from the business for his personal use are called his:

A). Capital

B). Cash

C). Drawings✔️

D). Purchases

22- When saleable goods are bought in a business, it is said to be:

A). Sales

B). Purchases✔️

C). Assets

D). Goods

23- If the goods are purchased from a supplier and payment is made to him at the same time, such purchases are known as:

A). Credit purchases

B). Cash purchases✔️

C). Cash sales

D). Credit sales

24- If the goods are purchased for which payment will have to be made at some future date it is known as:

A). Cash purchases

B). Purchases an account✔️

C). Returns outwards

D). Credit sales

25- If the defective or damage goods return to the suppliers are called:

A).purchases returns✔️

B). Sales returns

C). Expense

D). None of the above

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