Commerce MCQ for PPSC FPSC KKPSC BPSC SPSC Practice Test 1

1- Book of original entry are called:

A). Ledger

B). Worksheets

C). Journal✔️

D). None of these

2- For preparing balance sheets prepaid expenses are shown as part of:

A). Liability

B). Equities

C). Assets✔️

D). None of these

3- Unpaid and unrecorded expenses are called:

A). Prepaid expenses

B). Accrued expenses✔️

C). Additional expenses

D). None of these

4- Amount, cash or other assets removed from business by owner is:

A). Capital

B). Drawings✔️

C). Assets

D). None of these

5- Under the diminishing balance method, depreciation amount is:

A). Payment

B). Receipts

C). Expenditure✔️

D). None of these

6- Users of accounting information include:

A). The Tax Authorities

B). Investors✔️

C). Creditors

D). All of these

7- The business from (s) in which the owner ( s) is ( are ) personally able is ( are ) the:

A). Partnership only

B). Proprietorship only✔️

C). Corporation only

D). None of these

8- The investment of personal assets by the owner:

A). Increase total assets and increases owners equity✔️

B). Increases total assets only

C). Increases assets and liabilities

D). None of these

9- All of the following are forms of business organizations except:

A). Proprietorship

B). Corporation

C). Retailer ✔️

D). Partnership

10- Economic resources of a business that are expected to be of benefit in the future are referred to as:

A). Liabilities

B). Owner’s equity

C). Withdrawals

D). Assets✔️

E). None of these

11- An owner investment of land into the business would:

A). Decrease withdrawals

B). Increase liabilities

C). Increase owner’s equity

D). Decrease assets

E). None of these✔️

12- A cash purchase of supplies would:

A). Decrease owner’s equity

B). Increase liabilities

C). Have no effect on total assets

D). None of these✔️

13- An owner investment of cash into the business would:

A). Increase assets✔️

B). Decrease liabilities

C). Increase withdrawals

D).Decrease owner’s equity

E). None of these

14- The payment of rent each month for office space would:

A). Decrease total assets

B). Increase liabilities

C).Increase owner’s equity

D). None of these✔️

15- Which one of the following accounts would usually have a debit balance?

A). Cash

B). Creditors

C). Accounts payable

D). Salaries Expense✔️

E). None of these

16- Quick assets include, which of the following?

A). Cash

B). Accounts receivable

C). Inventories

D). Only A & B✔️

17- Net income plus operating expenses is equal to:

A). Net sales

B). Cost of goods available for sale

C). Cost of goods sold

D). Gross profit✔️

E).None of these

18- The Maximum number of partners in Pakistan can be fixed at the following:

A).20

B).50✔️

C).75

D). None of these

19- Balance sheet is always prepared:

A). For the year ended

B). As on  a specific date✔️

C). During the year

D). None of these

20- The measurable value of an alternative use of resources is referred to as:

A). An opportunity cost✔️

B). An imputed cost

C). A differential cost

D). A sunk cost

21- Expenses such as rent and depreciation of a building are shared by several departments these are:

A). Indirect expenses

B). Direct expenses

C). Joint expenses✔️

D). All the above

E). None of the above

22- Based on this data Re- order level is:

A).4500 units✔️

B).3900 units

C).1200 units

D).400 units

23- A credit balance remaining in FOH control is called:

A). Over applied overhead✔️

B). Under-applied overhead

C). Actual overhead

D). None of these

24- Direct material cost plus direct labour cost is called:

A). Prime cost✔️

B). Conversion cost

C). Product cost

D). All of these

25- Productivity means:

A). The ability to produce✔️

B). All units produce

C). Good units produce

D). None of these

Useful Links:-

Lecturer Commerce Online Tests

One Paper MCQs for PPSC FPSC KKPSC BPSC SPSC AJKPSC NTS

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