Multiple Choice Questions & Answers on APSC Commerce Optional | GkSeries

31 It is an economic resource which is owned by a business organization and is expected to benefit future operations. It is known as
1 share capital
2 revenue
3 receipt
4 asset

Answer: asset
32 Bill of lading is a document used in
1 wholesale trade
2 foreign trade
3 consignment business
4 road transportation

Answer: foreign trade
33 An asset is recorded in the books of accounts at
1 cost price
2 market price
3 out-of-pocket value
4 realizable value

Answer: cost price
34 Matching concept relates to the preparation of
1 Profit and Loss Account
2 Balance Sheet
3 Cash Flow Statement
4 Fund Flow Statement

Answer: Profit and Loss Account
35 Contingent liability is shown in the Balance Sheet under
1 Consistency Principle
2 Materiality Principle
3 Disclosure Principle
4 Going-Concern Principle

Answer: Disclosure Principle
36 Revenue is considered as being earned, when
1 cash is received
2 production is completed
3 sale is effected
4 process is going on

Answer: sale is effected
37 Subscription received in advance is
1 an income
2 an asset
3 a liability
4 an equity

Answer: a liability
38 Goodwill is
1 a right asset
2 a fictitious asset
3 an intangible asset
4 a nominal asset

Answer: an intangible asset
39 Premium brought in by the new partner is shared by the old partners in
1 sacrificing ratio
2 gaining ratio
3 old profit sharing ratio
4 new profit sharing ratio

Answer: sacrificing ratio
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40 On dissolution of a firm, if an unrecorded liability is paid, it is shown in
1 Debit side of Bank Account
2 Partners' Capital Account (Credit side)
3 Liability Account (Credit side)
4 Debit side of Realization Account

Answer: Debit side of Realization Account
41 Discount allowed on reissue of forfeited shares is debited to
1 Discount on Issue of Shares Account
2 Share Forfeiture Account
3 Reissue of Shares Account
4 Share Capital Account

Answer: Share Forfeiture Account
42 Short-term solvency is tested by
1 current ratio
2 debt-equity ratio
3 asset-turnover ratio
4 operating ratio

Answer: current ratio
43 If current ratio is 2-5 : 1 and current liabilities amount to f 80,000, current assets will amount to
1 f 1,60,000
2 f 1,80,000
3 f 2,00,000
4 f 2,40,000

Answer: f 2,00,000
44 Showing revenue expenditure as capital expenditure is a/an
1 error of omission
2 error of commission
3 error of principle
4 compensating error

Answer: error of principle
45 As per SEBI guidelines, the amount payable on application on each share shall not be less than what percent of the nominal value of share?
1 6%
2 10%
3 5%
4 8%

Answer: 5%

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