Accounting Mcqs

Page No. 32

The ratios that refer to the ability of the firm to meet the short term obligations out of its short term resources


aLiquidity ratio

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bLeverage ratio

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cLeverage ratio

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dProfitability ratio

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View Answer Liquidity ratio

Balance sheets are prepared


aDaily

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bWeekly

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cMonthly

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dAnnually

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View Answer Annually

Balance sheet is a statement of


aAssets

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bLiabilities

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cCapital

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dAll of the above

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View Answer All of the above

The following is a statement of revenues and expenses for a specific period of time


aTrading account

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bTrial Balance

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cProfit & Loss statements

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dBalance Sheet

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The following is a statement showing the financial status of the company at any given time


aTrading account

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bProfit & Loss statement

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cBalance Sheet

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dCash Book

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View Answer Balance Sheet

The process of entering all transactions from the Journal to Ledger is called


aPosting

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bEntry

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cAccounting

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dNone of the above

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View Answer Posting

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


aPurchase Journal

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bSales Journal

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cCash Journal

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dAll of the above

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View Answer All of the above

In Journal, the business transaction is recorded


aSame day

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bNext day

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cOnce in a week

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dOnce in a month

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View Answer Same day

Real account records


aDealings with creditors or debtors

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bDealings in commodities

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cGains and losses

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dAll of the above

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The account that records expenses, gains and losses is


aPersonal account

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bReal account

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cNominal account

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dNone of the above

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View Answer Nominal account

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