PPSC FPSC KPPSC Commerce Solved MCQs Practice Test 21

1- Assets which are short-lived and which can be converted into cash quickly to meet short-term liabilities are called:

A). Current assets ✔️

B). Fixed assets

C). Intangible assets

D). Tangible assets

2- Out of the current assets there which can be converted into cash very quickly or which arc already in form of cash are called:

A). Washing assets

B). Intangible assets

C). Liquid or quick assets ✔️

D). Fictitious assets

3- Assets which have no market value are called:

A). Liquid assets

B). Quick assets

C). Fictitious assets ✔️

D). Real assets

4- Assets whose value gradually reduce on account of use and finally exhausts completely, are called:

A). Liquid assets

B). Wasting assets ✔️

C). Fictitious assets

D). Quick assets

5- Assets which comes into existence upon the happening of a certain event, are called:

A). Fixed assets

B). Fictitious assets

C). Floating assets

D). Contingent assets ✔️

6- Expense paid in advance and income earned but not received are known as:

A). Contingent assets

B). Circulating assets

C). Quick assets

D). Outstanding assets ✔️

7- The total amount of debts payable by a business to its owner is called:

A). Internal liabilities

B). External liabilities ✔️

C). Deferred liabilities

D). Quick liabilities

8- All debts payable by a business to the outsiders ( other than the owner ) are called:

A). Internal liabilities

B). External liabilities ✔️

C). Deferred liabilities

D). Liquid liabilities

9- The liabilities which are repayable after a long period of time are called:

A). Liquid liabilities

B). Fixed liabilities ✔️

C). Deferred liabilities

D). Current liabilities

10- The debts which are repayable within a short period of time are called:

A). Long-term liabilities

B). External liabilities

C). Short-term liabilities ✔️

D). Internal liabilities

11- Debts which are repayable in the course of a month are called:

A). Internal liabilities

B). External liabilities

C). Deferred liabilities

D). Quick liabilities ✔️

12- Debts which are repayable in the course of less than one year but more than one month, is called:

A). Liquid or quick liabilities

B). Deferred liabilities ✔️

C). External liabilities

D). Contingent liabilities

13- Those liabilities which arise only on the happening of some event, are called:

A). Current liabilities

B). Contingent liabilities ✔️

C). Outstanding liabilities

D). Fixed liabilities

14- Outstanding expenses and unearned incomes are known as:

A). Current liabilities

B). Contingent liabilities

C). Outstanding liabilities✔️

D). Fixed liabilities

15- The surplus or excess of assets over liabilities is called the:

A). Assets of proprietor

B). Liability of proprietor

C). Income of proprietor

D). Capital of proprietor ✔️

16- For the business concern, capital is a:

A). Liability ✔️

B). Expense

C). Income

D). Asset

17- The portion of the funds of a concern which is represented by the fixed and floating assets is called the:

A). Fixed capital

B). Trading capital ✔️

C). Circulating capital

D). Working capital

18- The portion of the funds of a concern which is represented by the fixed assets is called the:

A). Circulating capital

B). Trading capital

C). Fixed capital ✔️

D). Working capital

19- The portion of the funds of a concern which is represented by the floating or circulating assets is called the:

A). Working capital

B). Fixed capital

C). Trading capital

D). Circulating capital ✔️

20- The excess of the floating assets over the floating liabilities is also called:

A). Fixed capital

B). Trading capital

C). Circulating capital

D). Working capital ✔️

21- The debentures and other fixed loans are sometimes called the:

A). Working capital

B). Circulating capital

C). Fixed capital

D). Loan capital ✔️

22- Closing stock is recorded at the:

A). Balance sheet and trading a/c ✔️

B). Balance sheet only

C). Profit and loss a/c

D). Trading a/c only

23- The valuation of closing stock is at:

A). Cost price

B). Market price

C). Cost or market price which ever is lower✔️

D). Both on cost and market price

24- Balance sheet shows the:

A). Profit earned by a business

B). Financial position of a business ✔️

C). Balances of all accounts

D). Less earned by a business

25- Profit and loss account shows the:

A). Profit and loss through sale of assets

B). Total capita! Employed

C). Profit and loss distribution

D). Profit earned or loss suffered by the business ✔️

Useful Links:-

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