1- 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
2- Short- Term Loan can be best described as:
A). If the period is three years
B). If the period is less than one year✔️
C). If the period is over one year
D). None of these
3- Preparation of final financial reports is governed in Pakistan under:
A). No Law
B). Companies Ordinance✔️
C). None of these
4- Inventory turnover is calculated as under:
A). CGS/ closing Inventory✔️
B). Gross profit Closing Inventory
C). Opening Inventory
D). None of these
5- Preparation of annual report of a firm governed under:
A). Partnership Act 1932
B). Under partnership Deed
C). None of these✔️
6- Increase in income constitutes:
A). Inflows✔️
B). Outflows
C). None of these
7- Audit and special aduit are the same:
A). In Insurance company
B). In Banking company✔️
C). None of these
8- Rent of the premises constitutes variable expense for cost allocation.
A). True
B). False✔️
9- Principal and Markup payment within one year constitutes long term liability for disclosure in the balance sheet of a company.
A). True
B). False✔️
10- Working Capital finance can be termed as “Running Finance” in a limited company.
A). True
B). False✔️
11- Conversion cost is calculated as under:
A). Labour plus materials
B). Labour plus overheads cost✔️
C). None of these
D). All of these
12- Current Ratio can be calculated as under:
A). Current Liabilities current Assets
B). Current Assets✔️
C). Current Liabilities
D). None of these
13- 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
D). None of these
14- 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 these
15- The state under which transaction are recorded chronologically in the books of accounts is called:
A). Summarizing
B). Classifying
C). Recording
D). None of these✔️
16- The terms expense and expenditure are:
A). Same in Nature
B). Different in Nature✔️
C). Opposite in Nature
D). None of these
17- When goods are given away as charity or free samples, the purchases account should be:
A). Debited
B). Credited✔️
C). Recorded in Balance sheet
D). None of these
18- The sale of a business asset on credit is recorded in:
A). Sales journal
B). General journal✔️
C). Cash Receipt journal
D). None of these
19- The discount account is a:
A). Personal Account
B). Nominal Account✔️
C). Real Account
D). Asset Account
20- The payments side of the cash book is under cost by Rs 200 when overdraft as per bank statement is the starting point:
A).Rs 200 will be deducted✔️
B).Rs 200 will be added
C).Rs 400 will be added
D). None of these
21- All the direct expenses are charged to:
A). Balance sheet
B). Profit and Loss Account
C). Trading Account✔️
D). None of these
22- Those liabilities which arise only on the happening of some event, are called:
A). Current Liabilities
B). Contingent Liabilities✔️
C). Outstanding Liabilities
D). None of these
23- Commission received in advance is to be considered as:
A). Outstanding Expense
B). Accrued Income
C). Prepaid Expense
D). Unearned Income✔️
E). None of these
24- The provision for discount on creditors is often not provided in keeping with the principle of:
A). Materilality
B). Consistency
C). Conservatism✔️
D). Realization
25- Which one of the following in not considered the permanent part of the accounting record?
A). Journal
B). Trial Balance
C). Balance sheet
D). Final Accounts
E). None of these✔️
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