PPSC FPSC Lecturer Commerce Solved MCQs Practice Test No. 24

1- Bill for repairs not yet paid is:

A). An outstanding expense✔️

B). An accrued income

C). A prepaid expense

D). An unearned income

2-In balance sheet rent outstanding should appear on:

A). Asset side

B). Liabilities side✔️

C). Debit side

D). None of the above

3- Wages paid for installing a machine should be debited to:

A). Machinery account✔️

B). Wages account

C). Cash account

D). Both machinery and wages account

4- In balance sheet prepaid expenses should be appear as:

A). Liabilities

B). Incomes

C). Expenses

D). Assets✔️

5-In balance sheet, pre received income is shown on:

A). Debit side

B). Liability side✔️

C). Both A &B

D). None of these

6- Net profit is always:

A). Equal to gross profit

B). More than gross profit

C). Less than gross profit✔️

D). Parallel to gross profit

7- Net loss is always:

A). Than gross loss✔️

B). Less than gross loss

C). Equal to gross loss

D). Parallel to gross loss

8- While making the adjusting entry in respect of depreciation, machinery account is:

A). Debited

B). Credited✔️

C). Both A & B

D). None of the above

9- Outstanding Wages are shown as:

A). An expense

B). A liability✔️

C). An asset

D). An income

10- While making an adjusting entry in respect of closing stock, we debit:

A). Closing stock✔️

B). Trading Account

C). Purchases Account

D). Opening stock

11- While making an adjusting entry in respect of interest on capital, we credit:

A). Interest on capital account

B). Capital account✔️

C). Profit and loss account

D). Trading account

12- When a customer became business debtor the amount due from him is called:

A). Loan

B). Allowance

C). Bad debt

D). Debts✔️

13- The debts which cannot recovered from the debtors, are called:

A). Debts

B). Loans

C). Bad debts✔️

D). Allowances

14- Bad debts is a business:

A). Asset

B). Liability

C). Loss✔️

D). Profit

15- The bad debts which are appearing in the trial balance only to be debited to:

A). Balance sheet

B). Profit and loss account✔️

C). Trading account

D). Debtors account

16- No adjustment is required for any bad debt which is appearing already in the:

A). Trial Balance✔️

B). Profit and Loss Account

C). Balance sheet

D). None of these

17- The debts, the recovery or realization of which is doubtful or uncertain, are known as:

A). Debts

B). Bad debts

C). Doubtful debts✔️

D). None of these

18- The amount setting a side out of profit for a possible loss or liability is called as:

A). Debts

B). Provision✔️

C). Interest

D). Doubtful debts

19-Bad debts is debited to:

A). Debtors account

B). Creditors account

C). Bad debts account✔️

D). Cash account

20- Bad debt recovered is credited to:

A). Debtors account

B). Bad debts recovered account✔️

C). Provision for bad debts account

D). Creditor account

21- Provision for doubtful debts is debited to:

A). Debtors account

B). Bad debts recovered account

C). Profit and loss account✔️

D). Provision for bad debts account

22- Adjusting entries are made at the end of each business:

A). Day

B). Week

C). Year✔️

D). Hours

23- Provision, for bad debts account normally has a:

A). Debit balance

B). Credit balance✔️

C). Both debit and credit balances

D). None of these

24- From the business point of view, the discount allowed to customers is:

A). A profit

B). A loss✔️

C). An asset

D). A liability

25- Business give a cash discount, on making prompt paying to its:

A). Debtors✔️

B). Creditors

C). Investors

D). Partners

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