1- A working paper which is prepared by the accountant for his own convenience is called:
A). Work sheet✔️
B). Cash Flows Statement
C). Balance sheet
D). Final Accounts
E). None of these
2- Any expenditure incurred to increase the profit earning capacity of the concern is a:
A). Revenue Expenditure
B). Current Expenditure
C). Capital Receipt
D). Capital Expenditure✔️
3- Depreciation on fixed assets is an example of:
A).Revenue Expenditure✔️
B). Capital Expenditure
C). Deferred Revenue Expenditure
D). None of these
4- The capital receipts are shown in the balance sheet on the:
A). Liability Side✔️
B). Asset Side
C). Debit Side
D). None of these
5- Error due to wrong allocation as expenditure between capital and revenue is regarded as:
A). Error of Omission
B). Error of principle✔️
C). Compensation Errors
D). None of these
6- Premium on issue of shares can be used for:
A). Payment of Dividends
B). Writing off preliminary Expenses✔️
C). Paying Fees to Director
D). None of these
7- Pre-incorporation profit is to be credited to:
A). Capital Revenue✔️
B). Profit and Loss Account above the line
C). Profit and Loss Account below the line
D). General premium
8- The excess of purchase price over the net assets is:
A). Goodwill✔️
B). Capital Revenue
C). Preliminary Expenses
D). Share premium
9- Statutory report is necessary in the case of:
A). All companies
B). Public Limited Companies✔️
C). Foreign limited Companies
D). Private limited Companies
10- Dividends are usually paid on:
A). Called up Capital
B). Paid up Capital✔️
C). Subscribed Capital
D). None of these
11- Amount set apart to meet losses to bad debt is a:
A). Provision✔️
B). Reserve
C). Liability
D). None of these
12- Advance payment of tax is in the nature of:
A). Asset
B). Revenue Expense
C). Liability
D). Prepaid Expense✔️
13- Evaluative – positive or negative- concerning people, objects, or events are called:
A). Perceptions
B). Attitudes✔️
C). Beliefs
D). None of these
14- The auditor is required to report that Financial Statements are:
A). True and correct
B). Complete and correct
C). True and fair✔️
D). None of these
15- The auditors are appointed by the following authorities:
A). Creditors
B). Debtors
C). Share Holders✔️
D). None of these
16- Interim audit is conducted for examining the account for:
A). Full one year
B). Next one year
C). Previous one year
D). For a part of current year✔️
17- Payment should be made preferably through:
A). Cross Cheque✔️
B).Bank Draft
C). Pay order
D). Cash Basis
18- In general, the accounts in the Incomes Statement are known as:
A). Real Account
B). Contra Asset
C). Nominal Account✔️
D). Unrecorded rever account
19- In general terms, financial assets appear in the Balance Sheet on:
A). Face Value✔️
B). Current cash Value
C). Cash
D). Estimated future sales Value
20- Which of the following is least important as a measure of short -term liquidity.
A). Debtor Ratio
B). Current Ratio
C). Cash flow from operating activities✔️
D). Quick Ratio
21- External users of financial accounting information include which of the following except.
A). Investors✔️
B). Labour unions
C). Line Manager
D). General public
22- A fixed budget is:
A). A budget for single level of activity
B). A budget which ignored inflation
C). Used only for fixed cost✔️
D). An overhead cost budget
23- Heavy expenditure on advertisement of a new product is a:
A). Capital Expenditure
B). Revenue Expenditure
C). Deferred Revenue Expenditure✔️
D). None of the above
24- Subscriptions received in advance is:
A). An income
B). An Asset
C).A Liability✔️
D).A Loss
25- At the time of admission of a new partner good will raised should be written off in:
A). New profit sharing ratio
B). Old profit sharing ratio✔️
C). Sacrificing ratio
D). Gaining ratio
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