PPSC FPSC KPPSC Commerce Solved MCQs Practice Test 22

1- Stock in trade is:

A). A current Asset✔️

B). A fixed Asset

C). An intangible Asset

D). A wasting Asset

2- Expenses relating to sale of goods are shown in:

A). Trading Account

B). Profit and Loss Account✔️

C). Balance sheet

D). Sales Account

3- A profit and loss Account is prepared:

A). For a certain given period✔️

B). At a particular point of time

C). On fixed date

D). After the fixed date

4- A balance sheet discloses the financial position of a firm:

A). For a given period

B). On a particular point of time✔️

C). On a certain fixed date

D). After the fixed date

5- Sales are equal to:

A). Cost of goods sold+ Profit✔️

B). Gross profit – Cost of goods sold

C). Gross profit+ Cost of goods sold

D). Cost of goods sold – Gross profit

6- Gross profit is equal to:

A). Sales – Closing stock

B). Purchases – Closing stock

C). Sales – Cost of goods sold✔️

D). Sales + Opening stock

7- Current liabilities are such obligations which are to be satisfied:

A). Within one year✔️

B). Within two years

C). Within three years

D). Within four years

8- Out of the following, the example of a current asset is:

A). Surrender value of life insurance policy

B). Discount on debentures

C). Bill receivable✔️

D). Good will

9- Purchase of an asset is called;

A). An expense

B). An expenditure✔️

C). A loss

D). An income

10- The balance appearing on the debit side of the trial Balance as an expenditure shown in the:

A). Balance sheet✔️

B). Trading Account

C). Profit and loss Account

D). Income Statement

11- If the profit is 1/4 of the sales then it is:

A).1/4 of the cost price

B).1/3 of the cost price✔️

C).1/5 of the cost price

D).1/2 of the cost price

12- If the profit is 25% of the cost price then it is:

A).25% of the sale price

B).23% of the sale price

C).20% of the sale price✔️

D).26% of the sale price

13- Interest on capital is:

A). Expenditure for the business

B). Gain for the business

C). Income outstanding for the business

D). Expense for the business✔️

14- Interest on drawings is :

A). Expenditure for the business

B). Expense for the business

C). Gain for the business✔️

D). Loss for the business

15- Goods given as charity should be credited to:

A). Purchases a/c✔️

B). Charity a/c

C). Sales a/c

D). Drawing a/c

16-The withdrawal of goods from the business by the proprietor should be credited:

A). Drawings account

B). Purchases account✔️

C). Capital account

D). Opening stock account

17- The loss on sale of old machinery is debited to:

A). Profit and loss a/c ✔️

B). Machinery account

C). Depreciation account

D). Sales account

18- Wages paid on the erection of a new machinery should be debited to:

A). Wages account

B). Cash account

C). Machinery account✔️

D). None of the above

19- The income statement has normally.

A). One part

B). Two parts✔️

C). Three parts

D). Four parts

20- patents and dies are the examples of:

A). Tangible assets

B). Intangible assets✔️

C). Contingent assets

D). Outstanding assets

21- If the closing stock appears in the trial balance, it taken only to the:

A). Trading account

B). Balance sheet✔️

C). Profit and loss account

D). Both trading account and balance sheet

22- A claim which can be enforced the assets of the firm in the court is called:

A). Assets

B). Equity✔️

C). Liability

D). Creditor

23- Net profit transferred:

A). Capital account✔️

B). Creditor account

C). Cash account

D). Drawing account

24- Net loss is credited to:

A). Trading Account

B). Profit and Loss Account✔️

C). Cash Account

D).  None of the above

25- Sales discount is debited to:

A). Trading Account

B). Balance sheet

C). Profit and Loss Account✔️

D). None of the above

Useful Links:-

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