Fundamentals of Accounting – Multiple Choice Questions (MCQ) with Answers PPSC, NTS (Page 2)

12-In journal, the business transaction is recorded

(A) Same day

(B) Next day

(C) Once in a week

(D) Once in a month

(Ans: A)

13-The following is (are) the type(s) of Journal

(A) Purchase journal

(B) Sales journal

(C) Cash journal

(D) All of the above

(Ans: D)

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

(Ans: A)

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

(Ans: C)

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

(Ans: C)

17-Balance sheet is a statement of

(A) Assets

(B) Liability

(C) Capital

(D) All of the above

(Ans: D)

18-Balance sheets are prepared

(A) Daily

(B) Weekly

(C) Monthly

(D) Annually

(Ans: D)

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

(Ans: A)

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

(Ans: C)

21-The following is (are) the current liability (ies)

(A) Bills payable

(B) Outstanding expenses

(C) Bank overdraft

(D) All of the above

(Ans: D)

22-Current ratio =

(A) Quick assets / Current liabilities

(B) Current assets / Current liabilities

(C) Debt. / Equity

(D) Current assets / Equity

(Ans: B)