Accounting Practice MCQs Competitive Exams Set 6

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(15) Real accounts are related to:

(a) Assets

(b) Expenses and incomes

(c) Customers and Creditors etc.

(d) None of these

Answer. (a)

(16) Which one of the following accounts would usually have a debit balance?

(a) Cash

(b) Creditors

(c) Accounts payable

(d) Salaries Expenses

(e) None of these

Answer. (a)

(17) Quick assets include which of the following?

(a) Cash

(b) Accounts Receivable

(c) Inventories

(d) Only (a) and (b)

(e) None of these

Answer. (d)

(18) Net income plus operating expenses is equal to:

(a) Net sales

(b) Cost of goods available for sale

(c) Cost of goods sold

(d) Gross profit

(e) None of these

Answer. (d)

(19) The maximum number of partners in Pakistan can be fixed at the following:

(a) 20

(b) 50

(c) 75

(d) None of these

Answer. (a)

(20) Balance sheet is always prepared:

(a) For the year ended

(b) As on a specific date

(c) None of these

Answer. (b)

(1) The measurable value of an alternative use of resources is referred to as:

(a) An opportunity cost

(b) An imputed cost

(c) A different cost

(d) A sunk cost

(e) None of these

Answer. (a)

(2) A quantitative expression of management objectives is an:

(a) Organizational chart

(b) Management chart

(c) Budget

(d) Procedural chart

(e) None of these

Answer. (c)

(3) A cost center is:

(a) A unit of production in relation to which costs are ascertained

(b) A location which is responsible for controlling direct costs

(c) Part of the factory overhead system by which costs are gathered

(d) Any location or department which incurs cost

(e) None of these

Answer. (d)