PPSC FPSC Lecturer Commerce Solved MCQs Practice Test No. 23

1- Gross loss is debited to:

A). Trading Account

B). Balance sheet

C). Cash Account

D). Profit and loss Account✔️

2- Wages and salaries are debited to:

A). Trading Account✔️

B). Profit and Loss Account

C). Balance sheet

D). Cash Account

3- Gross profit is credited to:

A). Trading Account

B). Profit and Loss Account✔️

C). Balance sheet

D). Both trading & profit and Loss Account

4-  Closing stock is credited to:

A). Profit and Loss Account

B). Trading Account✔️

C). Balance sheet

D). Cash Account

5- Payment for the purchase is machinery I is termed as:

A). Expense

B). Expenditure✔️

C). Liability

D). Asset

6- Gross profit + Stock in the beginning + purchases+ Direct expenses – Stock at the end=?

A). Sales✔️

B). Cost of goods sold

C). Cost of goods available for sale

D). Net purchases

7- All expenses connected with the office and its conduct are called:

A). Selling expenses

B). Marketing expenses

C). Administrative expenses✔️

D). Services expenses

8- Permanency preference method is adopted by:

A). Sole proprietorship

B). Partnership

C). Banks

D). Joint stock companies✔️

9- The mixed method is adopted by:

A). Sole proprietorship

B). Partnership

C). Joint stock companies

D). Banks and insurance companies✔️

10- Every business concern ascertains profit or loss of the business at the end of the year through:

A). Journal

B). Ledger

C). Final account✔️

D). Bills of exchange

11- Expenses paid in advance before they have fallen due are called:

A). Prepaid expenses✔️

B). Outstanding expenses

C). Accrued expenses

D). Expenses payable

12- A prepaid expense is:

A). A liability

B). An asset

C). An income✔️

D). A management expense

13- The outstanding income or accrued income will appears in the balance sheet as:

A). A liability

B). An income

C). An expense

D). An asset✔️

14- Income received in advance but not earned is called:

A). Unearned income✔️

B). Prepaid revenue

C). Outstanding income

D). Accrued income

15- The credit balance of the income received in advance will be shown on the balance sheet as:

A). An asset

B). An expense

C). A liability✔️

D). An income

16- The gradual and permanent decrease in the value of an asset from any cause; is know as:

A). Reduction of assets

B). Revaluation of assets

C). Realization of assets

D). Depreciation✔️

17- From the business point of view, interest on capital is regarded as:

A). An income

B). An expense✔️

C). An asset

D). A profit

18- From the business point of view, interest on drawings is:

A). An asset of the business

B). An expense to the business

C). A liability of the business

D). A revenue to the business✔️

19- The unsold stock at the end of the year represents the:

A). Opening stock

B). Opening purchases

C). Closing stock✔️

D). Closing purchases

20- Commission received in advance is to consider as:

A). Outstanding expense

B). Accrue income

C). Prepaid expense

D). Unearned income✔️

21- Unpaid salaries are to be consider as:

A). Outstanding expenses✔️

B). Accrued income

C). Prepaid expenses

D). Unearned income

22- Insurance premium paid in advance is:

A). An outstanding expense

B). An accrued income✔️

C). A prepaid expense

D). An unearned income

23- Interest due but not received is:

A). An outstanding expense

B). An accrued income✔️

C). A prepaid expense

D). An unearned income

24- Rent due but not paid is to be:

A). An outstanding expense✔️

B). An accrued income

C). A prepaid expense

D). An unearned income

25- Discount to be received is:

A). An outstanding expense

B). An accrued income✔️

C). A prepaid expense

D). An unearned income

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