MCQs
MCQs
2-The long term assets that have no physical existence but are rights that have value is known as
(A) Current assets
(B) Fixed assets
(C) Intangible assets
(D) Investments
3-The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
(A) Current assets
(B) Fixed assets
(C) Intangible assets
(D) Investments
6-The liabilities that are payable in more than a year and are not be liquidated from current assets
(A) Current liabilities
(B) Fixed liabilities
(C) Contingent liabilities
(D) All of the above
7-The debts, which are to be repaid within a short period (year or less) are known as
(A) Current liabilities
(B) Fixed liabilities
(C) Contingent liabilities
(D) All of the above
8-The sales income (Credit and Cash) of a business during a given period is called
(A) Transactions
(B) Sales returns
(C) Turnover
(D) Purchase returns
9-Any written evidence in support of a business transaction is called
(A) Journal
(B) Ledger
(C) Ledger posting
(D) Voucher
14-The process of entering all transactions from the journal to ledger is called
(A) Posting
(B) Entry
(C) Accounting
(D) None of the above
15-The following is a statement showing the financial status of the company at any given time
(A) Trading account
(B) Profit and Loss statements
(C) Balance sheet
(D) Cash book
16-The following is a statement of revenues and expenses for a specific period of time
(A) Trading account
(B) Trial balance
(C) Profit and loss statements
(D) Balance sheet
17-Balance sheet is a statement of
(A) Assets
(B) Liability
(C) Capital
(D) All of the above
19-The ratios that refer to the ability of the firm to meet the short term obligations out of its short term
resources
(A) Liquidity ratio
(B) Leverage ratios
(C) Activity ratios
(D) Profitability ratios
20-The measure of how efficiently the assets resources are employed by the firm is called
(A) Liquidity ratio
(B) Leverage ratios
(C) Activity ratios
(D) Profitability ratios