PPSC FPSC KPPSC Commerce Solved MCQs Practice Test 19

1- In business concern, cash balance is a very important element of its:

A). Financial condition✔️

B). Administrative condition

C). Managerial condition

D). Marketing condition

2- The customer may deposit cash or cheque with the aid of a:

A). Bank statement

B). Pay in slip✔️

C). Passbook

D). Cash book

3- A copy of the customer’s account in the bank’s ledger is called:

A). Deposit statement

B). Balance statement

C). Bank statement✔️

D). Customer

4- Disagreement in balances may arise owing to mistake or mistakes in the:

A). Cash book only

B). Bank statement

C). Cash book or bank statement✔️

D). Bank column of the cash book only

5- The statement which contains a complete and satisfactory explanation of the differences in balances as per cash book and bank statement is known as:

A). Bank statement

B). Cash statement

C). Balance statement

D). Bank reconciliation statement✔️

6- Bank account is a:

A). Personal Account

B). Real Account✔️

C). Nominal Account

D). None of the above

7- A bank reconciliation statement is prepared by:

A). Banker

B). Accountant of the business✔️

C). Statutory auditors

D). Registrar

8- When bank column of a cash book shows a credit balance, it means:

A). Cash balance

B). Bank balance

C). Under draft

D). Over draft✔️

9- Bank reconciliation is not a:

A). Ledger account✔️

B). Memorandum statement

C). Reconcile records

D). None of the above

10- Bank reconciliation statement is a part of:

A). Pass book

B). Ledger account

C). Journal

D). Cash book✔️

11- Bank statement is the statement of account of the customer maintained by the:

A). Customer

B). Accountant of the business

C). Bank✔️

D). Statutory auditor

12- The debit balance of the bank account in the books of the business should be equal to the credit balance of the account of the business in the books of the:

A). Business

B). Bank✔️

C). Registrar

D). Notary public

13- When bank statement shows a credit balance it means:

A). Favorable balance✔️

B). Unfavorable balance

C). Overdraft

D). None of the above

14- Bank reconciliation statement is:

A). A memorandum statement✔️

B). A ledger account

C). A pan of the cash book

D). A part of the journal

15- The book in which small payments, which are not convenient to record in the main cash book, are recorded is called:

A). Mini cash book

B). Main cash book

C). Daily expenses book

D). Petty cash book✔️

16- The balance of petty cash book is:

A). A liability

B). An expense

C). A gain

D). An asset✔️

17- The term imprest System is used to relation to:

A). Purchase book

B). Sales book

C). Cash book

D). Petty cash book✔️

18- Petty cash book is a branch of:

A). Pass book

B). Sales bank

C). Cash book✔️

D). Purchase book

19- When the monthly bank statement is sent out which one of the following would not appear?

A). Interest charged by the bank

B). A dishonored cheque

C). A direct debit

D). A payment from petty cash✔️

20- Which of the following, enable us to check on the conduct of the business, and to discover whether it is being run profitably:

A). Final Accounts✔️

B). Trial balance

C). Ledgers

D). Journal

21- Which of the following discloses the financial position of the business:

A). Trading Account

B). Profit and Loss Account

C). Profit and Loss appropriation a/c

D). Balance sheet✔️

22- The profit and Loss appropriation account is not prepared in the case of:

A). Partnership business

B). Public limited company

C). Sole proprietorship business✔️

D). Private limited company

23- The balance of trading account which represents either Gross profit or Gross Loss is transferred to:

A). Profit and Loss Account✔️

B). Balance sheet

C). Work sheet

D). None of the above

24- Gross profit equals:

A). Sales minus closing stock

B). Purchases minus closing stock

C). Net profit minus expenses

D). Sales minus cost of goods sold✔️

25- Net profit equals:

A). Gross profit minus expenses✔️

B). Sales minus cost of sales

C). Sales minus expenses

D). Capital minus expenses

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