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 ✔️
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