Final Accounts MCQs (1-10)

1. Trading account is prepared to find out?

(a) Gross profit or loss

(b) Net profit or loss

(c) Financial position

(d) None

Correct! Wrong!

2. Opening stock is?

(a) Debited in trading account

(b) Credited in trading account

(c) Credited in profit and loss account

(d) Debited in profit and loss account

Correct! Wrong!

3. Which one of the following assets could be described as a current asset?

(a) Machinery to manufacture goods for resale

(b) Stock of goods for resale

(c) Buildings to house the machinery

(d) Land on which the buildings stand

Correct! Wrong!

4. Retained Earnings is classified as which type of account?

(a) Asset

(b) Liability

(c) Expense

(d) Stockholders' equity

Correct! Wrong!

5. All of the following are stockholders’ equity accounts except?

(a) Investment in Stock

(b) Capital Stock

(c) Common Stock

(d) Retained Earnings

Correct! Wrong!

6. Wages is an example of?

(a) Capital expenses

(b) Indirect expenses

(c) Direct expenses

(d) All of before

Correct! Wrong!

7. Profit is the difference between?

(a) Assets and liabilities

(b) Assets and equities

(c) The assets purchased with cash contributed by the owner and the cash spent to operate the business

(d) The assets received for goods and services and the amounts used to provide the goods and services

Correct! Wrong!

8. Tangible assets used in the business that are of a relatively fixed or permanent nature are called?

(a) Fixed assets

(b) Revenues

(c) Expenses

(d) Liabilities

Correct! Wrong!

9. Profit and loss account would not include?

(a) Salaries

(b) Drawings

(c) Rent received

(d) Carriage outwards

Correct! Wrong!

10. Current liabilities are those obligations which are to be satisfied within?

(a) 6 months

(b) 1 year

(c) 2 year

(d) Both A & B

Correct! Wrong!

1. Trading account is prepared to find out?

2. Opening stock is?

3. Which one of the following assets could be described as a current asset?

4. Retained Earnings is classified as which type of account?

5. All of the following are stockholders’ equity accounts except?

6. Wages is an example of?

7. Profit is the difference between?

8. Tangible assets used in the business that are of a relatively fixed or permanent nature are called?

9. Profit and loss account would not include?

10. Current liabilities are those obligations which are to be satisfied within?

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