A person from whom such goods in which the firm deals are purchase on credit basis is called as ___?

A. Tread Debtor
B. Tread Creditor
C. Supplier
D. Account Payable

Answer

Correct Answer: D. Account Payable

Detail about Mcqs

A person from whom goods are purchased on a credit basis is referred to as an “Account Payable.” This represents a liability for the purchasing firm, indicating that they owe money to the supplier for the goods purchased.

Which of the following statement measure the financial position of the entity on particular time?

A. Income Statement
B. Balance Sheet
C. Cash Flow Statement
D. Statement of Retained Earning

Answer

Correct Answer: B. Balance Sheet

Detail about Mcqs

The Balance Sheet, also known as the Statement of Financial Position, provides a snapshot of an entity’s financial position at a specific point in time. It shows the company’s assets, liabilities, and shareholders’ equity at that particular moment. The Income Statement, Cash Flow Statement, and Statement of Retained Earnings, on the other hand, report financial activities and performance over a period of time.

Cost of capital is highest in case of?

A. Debt
B. Equity
C. Bond
D. Loan

Answer

Correct Answer: B. Equity

Detail about Mcqs

The cost of capital is the required rate of return that a firm must generate to attract investment from its investors or financiers. It is the overall cost of financing the company’s operations, combining the cost of debt and the cost of equity. Equity represents ownership in a company. Equity investors, such as shareholders, expect a return on their investment in the form of dividends and capital appreciation. The cost of equity is higher than the cost of debt because equity investors take on more risk; they are residual claimants and only receive returns after all other obligations have been met.

Disposable income is the part of households “income left after the deduction of ___?

A. Pension Contributions
B. Income tax and Social security payments
C. Income Tax
D. Savings

Answer

Correct Answer: B. Income tax and Social security payments

Detail about MCQs

Disposable income is the amount of money that households have available for spending and saving after income taxes and social security payments have been deducted. It represents the actual income available to households for consumption and savings.

A systematic way to maintain the books of account is called ___?

A. Economics
B. Accountancy
C. Book Keeping
D. Auditing

Answer

Correct Answer: C. Book Keeping

Detail about MCQs

The systematic way to maintain the books of accounts is called “Bookkeeping” (Option C). Here’s a brief explanation of the terms mentioned: Bookkeeping (Option C): Bookkeeping is the systematic process of recording, organizing, and maintaining financial transactions of a business. This includes recording income and expenses, ensuring accuracy, and creating financial statements.

The audit of a public limited company is ___?

A. Necessary on yearly basis
B. After every three yeas
C. After every six months
D. Not Necessary

Answer

Correct Answer: A. Necessary on yearly basis

Detail about MCQs

The audit of a public limited company is typically necessary on a yearly basis. This annual audit is conducted to ensure the accuracy and reliability of the company’s financial statements, providing assurance to shareholders, regulators, and other stakeholders about the company’s financial health and adherence to accounting standards.

In ___ Transaction personal account may not be involved while in ___ Transaction personal account is definitely involved?

A. General, Journal
B. Cash, Sales
C. Credit, Purchase
D. Cash, Credit

Answer

Correct Answer: C. Credit, Purchase

Detail about Mcqs

The more appropriate answer would be a modification of Option C: “In credit transactions, personal accounts may not be involved, while in cash transactions, personal accounts are definitely involved.” This is a more accurate representation of the concept.

“It” is an artificial account that appears in the Trial Balance to account for undetected errors. Here “It” stands for?

A. Fixed A/c
B. Reserve A/c
C. Suspense A/c
D. None of these

Answer

Correct Answer: C. Suspense A/c

Detail about Mcqs

In accounting, a Suspense Account (or Suspense A/c) is used to temporarily record transactions when there are discrepancies or errors that need to be resolved. It serves as a placeholder for transactions that cannot be immediately identified or corrected. Therefore, “It” in this context stands for the Suspense Account.

 

Short term obligations that have to be met within the next twelve months is called?

A. Current Assets
B. Working Capital
C. Secured Loans
D. Current Liabilities

View Answer

Correct Answer: D. Current Liabilities

Detail about Mcqs

Current liabilities are obligations that a company expects to settle within the next twelve months. Examples include short-term loans, accounts payable, and other obligations that fall due in the short term.