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
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