NAME :

DATE :
DEGREE :

1. The long-term assets that have no physical existence but are rights that have
value is known as
a) Current Assets
b) Fixed Assets
c) Intangible Assets
d) Investments

2. Patents, Copyrights and Trademarks are.

a) Currents Assets
b) Fixed Assets
c) Intangible Assets
d) Investments

3. The Account that records expenses, gains and losses is

a) Personal Account
b) Nominal Account
c) Real Account
d) None of the Above

4. The Process of entering all the transactions from journal to Ledger is called.
a) Posting
b) Entry
c) Accounting
d) None of the Above

5. The Ratio refers to the ability of the firm to meet its short-term obligations out
of its short-term resources.
a) Liquidity Ratio
b) Leverage Ratio
c) Activity Ratio
d) Profitability Ratio

6. Current Ratio =
a) Quick Assets / Current Liabilities
b) Current Assets / Current Liabilities
c) Debt / Equity
 d) Current Assets / Equity

7. The revenues and expenses of a company are displayed in which statement?

a) Balance Sheet
b) Cash Flow Statement
c) Income Statement
d) None of the above

8. Revenue - Expenses =?
a) Net Income
b) Net Loss
c) Depreciation
d) None of the above

9. Market value of the shares is decided by ____________

a) Company
b) Investment Market
c) Government
d) Shareholders

10. An entry with more than one debit or credit is known as

a) Compound Entry
b) Single Entry
c) Multiple Entry
d) None of the Above
11. Which of the following inventory valuation methods show higher profits during
the period of rising prices?
a) FIFO
b) LIFO
c) Weighted average cost method.
d) Simple average method

12. A document sent to customers when he returns the goods is called.

a) Promissory note
b) Invoice
 c) Credit Note
d) Debit Note

13. Which of the following is NOT an example of intangible assets?

a) Franchise Rights
b) Goodwill
c) Patents
d) Land

14. Debenture is also named as

a) Share
b) Bond
c) Reserve
d) Equity

15. Which of the following accounts will be credited in the books of XYZ Co. Ltd,
if the business purchases a vehicle by cheque?
a) Vehicle Account
b) Business Account
c) Bank Account
d) Debtors Account

16. The financial management function has become _____ and complex.

a) Less demanding
b) More demanding
c) Less important
d) Outdated

17. The book value of old furniture was Rs. 1,500. It was sold for Rs. 500. The
difference is a ___.
a) Revenue expenditure
 b) Revenue loss
c) Capital expenditure.
d) Capital loss.

18. A Person borrow Rs. 5000 for 2 years at 4% p.a. simple Interest. He
immediately lends it to another person at 6 ¼ p.a. for 2 years. Find his gain in the
transaction per year.
a) ₹ 112.5
b) ₹ 125
c) ₹ 150
d) ₹ 167.5

19. Companies’ profit divided among shareholders is.

a) Interest
b) Reserve
c) Dividend
d) Surplus

20. A dealer incurs a loss of 5 % if he sells an article for Rs. 1805. What price
must he sell the article to gain 5 % on that article?
a) 1900
b) 2000
c) 2034
d) 1995

21. The Capital issue control was introduced in the year.

a) 1934
b) 1939
c) 1943
d) 1947

22. The ______ approach of financial management provides an analytical

framework for financial problems.

A. Classical
B. Traditional
C. Modern
D. Empirical

23. A Loan can be described as a short-term loan if the period is?

a) Less than 18 months
b) Less than 12 months
c) More than 18 months
d) More than 2 years

24. A company sold goods worth $5,000 on 5 June and $10,000 on 28 June. The
company received the first payment on 25 June and second on 7 July. The
company prepared the financial statement for 30 June. What would be the total
sale on the financial statement?
a) $5000
b) $10000
c) $15000
d) $20000

25. An item of equipment costs $300,000 and has a residual value of $50,000 at
the end of its expected useful life of four years. What is the depreciable amount?
a) $50000
b) $250000
c) $300000
d) $350000

26. Which of the following assets is NOT depreciated?

I. Advances
II. Land
III. Machinery
a) I Only
b) II Only
c) I and II
d) II and III
27. The capital of a business is $100,000 and the liabilities are $40,000. What are
the total assets?

a) $40,000
b) $60,000
c) $100,000
d) $140,000

28. A bank overdraft is shown as a/an _____ balance in the bank statement.

a) Debit
b) Credit
c) credit – debit
d) none of these

29. The debts owing to others by the business is known as

a) Liabilities
b) Expenses
c) Debtors

30. On Which side of balance sheet TDS receivable will appear?

a) Liability
b) Expenses
c) Assets
d) Income