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NOTE: SOME OF MCQs ARE SOLVED AND SOME ARE NOT, SOLVED AREFROM ASSIGNMENTS SOLUTIONS. THANKS 1. The balance sheet is alternately known as :(a) Assets statement (b) Statement of financial position (c) Statement of profit and loss(d) None of the given options2. Trading & Profit & loss account and balance sheet is prepared from:(a) Ledger balance(b) Ledger balances, cash and bank balances(c) Cash book and bank book (d) Trial balance 3. Interest on drawing is an:(a) Expenditure for the business(b) Expense for the business (c) Gain for the business (d) Loss for the business4.

The distinction between revenue account and capital account is necessary for t h e preparation of: (a) Final accounts (b) Receipt and payment account(c) Cash flow statements (d) Funds flow statements5. Capital expenditure is that expenditure which is:(a) Paid in lump-sum(b) Large in amount (c) Intended to benefit the future period (d) Intended to benefit the current period6. Calculate the gross profit /loss if:Sales Rs. 60,000; Cost of sales Rs. 50,000; Opening stock Rs. 10,000; Purchases Rs.40,000; Wages Rs. 20,000 and Office rent Rs. 10,000.(a) Loss Rs. 10,000(b) Loss Rs. 20, 000 (c) Profit Rs. 10,000 (d) None of the given options7. Balance Sheet shows the:(a) Profit earned by the business(b) Total capital employed (c) Financial position of the business (d)

Trading results of the business8. Net profit is equal to:(a) Sales less cost of sales and operating expenses(b) Gross profit less operating expenses(c) Sales less operating expenses (d) Both (a) & (b) 9. Selling expenses are shown in: (a) Trading account (b) Profit and loss account (c) Profit and loss appropriation account(d) Manufacturing account10. Current liabilities are such obligations which are to be satisfied within: (a) One year (b) Two years(c) Three years(d) All of the given options 1) Depreciation is charged on land in case of: A. Leased hold landB. Land purchased by the owner himself C. Depreciation is never being charged on landD.

None of the given options 2) Which of the following does not affect the cash balance of a business? A. Increases in inventoryB. Changes in accounts receivablesC. DepreciationD. Seasonality 3) Ongoing expenditures, such as general and administrative expenses, whichoccur in the process of selling and managing a company are known as: A. Cost of goods soldB. Selling expensesC. Gross margin

D. Operating expenses 4) Which of the following is not the same as the others? A. GainB. Gross marginC. IncomeD. Revenue 5) The income statement records: A. SalesB. Cost of goods soldC.

ExpensesD. All of the above 6) The difference between assets and liabilities is called: A. Balance sheetB. ProfitC. Gross marginD. Equity 7) Long-term liabilities are: A. Debts or portions of debt due more than 12 months from the date of the balance sheetB. Bills for inventoryC. Amounts due for renovationsD. Amounts due for supplies 8) Which of the following is not a category used for assets on the balance sheet? A. Current

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financial ma

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