MCQ Questions on Balance Sheet: Below, You will find a list of Commerce MCQ Questions as per the latest prescribed syllabus. Ace up your preparation with the Objective Questions available on Balance Sheet and enhance your subject knowledge. Understand the concept clearly by consistently practicing the Multiple Choice Questions and score well in your exams.
MCQ Questions on Balance Sheet
1. On balance sheet, accruals, notes payables, and account payable are listed under which category?
(a) Current Liabilities
(b) Accumulated Liabilities
(c) Noncurrent Liabilities
(d) Accrued Liabilities
Answer
Answer: (a)
2. Inventories, cash and equivalents, and accounts receivables are listed as
(a) Earnings on Income Statement
(b) Payments on Income Statement
(c) Assets on the Balance Sheet
(d) Liabilities on the Balance Sheet
Answer
Answer: (c)
3. Salaries and wages employees are recorded in which accounts are called
(a) Accruals Accounts
(b) Accrued Expenses
(c) Zero Liabilities
(d) Both A and B
Answer
Answer: (d)
4. In the situation of bankruptcy, a stock which is recorded above common stock and below debt account is
(a) Preferred Stock
(b) Debt Liabilities
(c) Common Liabilities
(d) Hybrid Stock
Answer
Answer: (a)
5. A firm buys products but does not pay to suppliers instantly. This is recorded as
(a) Account Receivable
(b) Account Payable
(c) Accumulated Liabilities
(d) Current Liabilities
Answer
Answer: (b)
6. In a balance sheet, the total of common stock and retained earnings are examined as
(a) Common Equity
(b) Due Equity
(c) Preferred Equity
(d) Common Perpetuity
Answer
Answer: (a)
7. In the Income statement, the process of recording inventory that gives a lower cost of a commodity sold is categorized as
(a) First Out Receivable
(b) Last in First Out
(c) Last Out Receivable
(d) First in First Out
Answer
Answer: (b)
8. Financial securities which can be changed into cash to their book value price are categorized as
(a) Short-term Investments
(b) Inventories
(c) Long-term Investments
(d) Cash Equivalents
Answer
Answer: (d)
9. Earnings that have a cumulative amount and are not paid to the stockholder as a dividend is known as
(a) Common Earnings
(b) Preferred Earnings
(c) Non-paid Earnings
(d) Retained Earnings
Answer
Answer: (d)
10. Information that is used by investors for forecasting future earnings is documented in
(a) Annual Report
(b) Five Years Report
(c) Exchange Report
(d) Stock Report
Answer
Answer: (a)