PPSC FPSC KPPSC Commerce Solved MCQs Practice Test 20

1- A man buys Rs. 40,000 worth of goods and sells them for Rs. 50,000. His gross profit is:

A). Rs. 10,000✔️

B). Rs. 20,000

C). Rs. 30,000

D). Rs. 40,000

2- If the gross profit is Rs. 5000 and the net profit is 25% of the gross profit. The expenses must be:

A). Rs. 1250

B). Rs. 3750✔️

C). Rs. 4150

D). Rs. 6250

3- An operating statement is similar to a:

A). Trial Balance

B). Balance sheet

C). Trading profit and Loss Account✔️

D). Bank reconciliation statement

4- Net. Sales. Equals, sales minus:

A). Return outwards

B). Return inwards✔️

C). Cost of goods sold

D). Carriage on sales

5- All duties on goods purchased should be debited to:

A). Profit and Loss Account

B). Balance sheet

C). Position statement

D). Trading account✔️

6-All the direct expenses are charged to:

A). Balance sheet

B). Profit and Loss Account

C). Trading Account✔️

D). None of these

7-An amount paid to a person for exploiting rights possessed by him, is called as:

A). Excise duty

B). Octroi duty

C). Royalty✔️

D). Wages

8-The nominal accounts are transferred to the:

A). Profit and Loss Account✔️

B). Balance sheet

C). Position statement

D). Statement of financial condition

9- The real or personal accounts goes to the:

A). Profit and Loss Account

B). Trading Account

C). Income Statement

D). Balance sheet✔️

10- The dues imposed on ships and their cargoes when they are unloaded on the part are called:

A). Excise duty

B). Octroi duty

C). Dock charges✔️

D). None of the above

11- Dock charges is a:

A). Indirect expense

B). Direct expense✔️

C). Direct income

D). None of the above

12- All the direct expenses debited to the:

A). Profit and Loss Account

B). Balance sheet

C). Trading Account✔️

D). Income statement

13- All the indirect expenses debited to the:

A). Profit and Loss Account✔️

B). Trading Account

C). Balance sheet

D). None of the above

14- The excess of the net income from sales over the cost of goods sold is called:

A). Cost of goods sold

B). Gross profit✔️

C). Net profit

D). Operating profit

15- The excess of gross profit on sales over total operating, expenses is called:

A). Cost of goods sold

B). Gross profit

C). Net profit✔️

D). None of the above

16-The account which is prepared for determining gross profit or gross loss of a business concern, is called:

A). Balance account

B). Trading Account✔️

C). Bank statement

D). Cash statement

17- The account which is prepared for determining net- profit or net- loss:

A). Personal Account

B). Real Account

C). Profit and Loss Account✔️

D). Trading Account

18- The order in which assets and liabilities are stated on the balance sheet is termed as:

A). Liquidity

B). Realizability

C). Marshalling✔️

D). None of the above

19- All the things and properties under the ownership of the business is called:

A). Liabilities

B). Assets✔️

C). Incomes

D). Capital

20- Our dues to others or anything against which we are to pay money or render service, is known as:

A). Owner’s equity

B). Assets

C). Liability✔️

D). Expenses

21- Balance sheet reveals the financial position of a concern on a particular date at a point of time,so it is also called:

A). Income Statement

B). Accounting statement

C). Balance statement

D). Position statement✔️

22- Assets which have some market value are called:

A). Real Assets✔️

B). Current Assets

C). Liquid Assets

D). None of the above

23- Assets which have long life and which are bought for use for a long period of time are called:

A). Current Assets

B). Fixed Assets✔️

C). Wasting Assets

D). None of the above

24- Assets which have physical existence and which can be seen, touched and felt are called:

A). Current Assets

B). Intangible Assets

C). Tangible Assets✔️

D). Fictitious Assets

25- Assets which have no physical existence and which cannot be seen, touched are:

A). Fixed Assets

B). Tangible Assets

C). Fictitious Assets

D). Intangible Assets✔️

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