Accounting Questions and Answers | Online Quiz for Practice

46. Which of the following would not be found on a standardized balance sheet?

1. Inventory
2. Accruals and Deferred Income
3. Extraordinary Charges
4. Creditors due and payable after more than one year

47. Following is (are) the characteristic(s) of a budget

1. It outlines projected activities
2. Expressions are made in quantitative terms
3. It is for a fixed period
4. All of the above

48. Any written evidence in support of a business transaction is called

1. Journal
2. Ledger
3. Ledger posting
4. Voucher

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

1. Liquidity ratio
2. Leverage ratios
3. Activity ratios
4. Profitability ratios

50. The measure of how efficiently the assets resources are employed by the firm is called

1. Liquidity ratio
2. Leverage ratios
3. Activity ratios
4. Profitability ratios

51. Lower the Debt Equity ratio

1. Lower the protection to creditors
2. Higher the protection to creditors
3. It does not affect creditors
4. None of the above

52. Which of the following is not an asset?

1. Motor Vehicle
2. Loan to buy Equipment
3. Building
4. Computer

53. What is the main purpose of financial accounting?

1. Organize financial information
2. Keep track of company expenses
3. Minimize company taxes
4. Provide useful, financial information to outsiders

54. The accounts that records expenses, gains and losses are

1. Personal accounts
2. Real accounts
3. Nominal accounts
4. None of the above

55. The process of entering all transactions from the journal to ledger is called

1. Posting
2. Entry
3. Accounting
4. None of the above