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Worksheets

Inquisitive

Total questions: 40

Worksheet time: 8mins

Name
Class
Date
1.

The following are the examples of financial assets except?

a)

Stocks

b)

Bank Loan

c)

Bond

d)

Raw Material

e)

None of the above

2.

Economic life of an enterprise is split into the periodic interval as per ------- concept

a)

Matching

b)

Money Measurement

c)

Perodicity

d)

Accrual

3.

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

a)

Compound entry

b)

Single entry

c)

Multiple entry

d)

Double entry

4.

In finance, we refer to the market where new securities are bought and sold for the first time?

a)

Money Market

b)

Capital Market

c)

Primary Market

d)

Secondary Market

5.

Which one of the following can issue the corporate bond?

a)

Individuals

b)

Government

c)

Public limited companies

d)

All of the above

6.

Profit maximization is a?

a)

Long term concept

b)

Short term concept

c)

Both a & b

d)

None

7.

Which is known as the Book of Original Entry

a)

Ledger

b)

Journal

c)

Trial Balance

d)

Cash Book

8.

Amount invested by proprietor into the business is known as

a)

Cash

b)

Capital

c)

Drawings

d)

Investment

9.

A corporation (or a firm) is considered to be owned by its

a)

Founders

b)

Shareholders

c)

Top Management

d)

Board of Directors

10.

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

a)

Patents

b)

TradeMarks

c)

Raw material

d)

Technical expertise

11.

What type of risk can be eliminated by diversification?

a)

Specific risk

b)

Security risk

c)

Market risk

d)

Beta

12.

An investment should be accepted if its Net Present Value (NPV) is

a)

0

b)

1

c)

Negative

d)

Positive

13.

Bills of exchange is signed by whom?

a)

Drawer

b)

Drawee

c)

Holder of Bill

d)

Notary public

14.

Noting charges are paid by

a)

Drawer

b)

Drawee

c)

Holder of Bill

d)

Notary Public

15.

Which of the parties can be 'Payee' also

a)

Drawer

b)

Drawee

c)

Debtors

d)

All of the above

16.

A person who endorses a bill

a)

Drawee

b)

Payee

c)

Endorser

d)

Bank

17.

Capital and Revenue expenditure is differentiated following the materiality concept.

a)

True

b)

False

18.

Accounting furnishes data on

a)

Income and cost for the managers

b)

Financial conditions of the institutions

c)

Company’s tax liability for a particular year

d)

All the above

19.

Long term assets having no physical existence but, possessing a value are called

a)

Intangible assets

b)

Fixed assets

c)

Current assets

d)

Investments

20.

The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known a

a)

Current assets

b)

Fixed assets

c)

Intangible assets

d)

Investments

21.

The debts which are to be repaid within a short period (a year or less) are referred to as

a)

Current Liabilities

b)

Fixed liabilities

c)

Contingent liabilities

d)

All the above

22.

Gross profit is

a)

Cost of goods sold + Opening stock

b)

Excess of sales over cost of goods sold

c)

Sales fewer Purchases

d)

Net profit fewer expenses of the period

23.

Net profit is computed in the

a)

Profit and loss account

b)

Balance sheet

c)

Trial balance

d)

Trading account

24.

In order to find out the value of the closing stock during the end of the financial year we

a)

do this by stocktaking

b)

deduct the cost of goods sold from sales

c)

deduct opening stock from the cost of goods sold

d)

look in the stock account

25.

If a trial balance totals do not agree, the difference must be entered in

a)

The Profit and Loss Account

b)

A Nominal Account

c)

The Capital Account

d)

A Suspense Account

26.

If we take goods for own use we should

a)

Debit Drawings Account, Credit Purchases Account

b)

Debit Drawings Account: Credit Stock Account

c)

Debit Sales Account: Credit Stock Account

d)

Debit Purchases Account: Credit Drawings Account

27.

Which method does not consider the time value of money

a)

Net present value

b)

Internal Rate of Return

c)

Average rate of return

d)

Profitability Index

28.

Cost of capital is helpful in corporative analysis of various

a)

Source of Finance

b)

Source of Services

c)

Source of material

d)

Product

29.

If the current ratio is 2: 1 and working capital is Rs. 60,000, What is the value of the current assets?

a)

Rs. 60,000

b)

Rs. 1,00,000

c)

Rs. 1,20,000

d)

Rs. 1,80,000

30.

Which one is not an important objective of financial Management?

a)

Profit Maximisation

b)

Wealth Maximisation

c)

Value Maximisation

d)

Maximisation of Social benefit

31.

Which of the following accounting equations is not correct?

a)

Assets = Liabilities + Capital

b)

Capital = Assets - Liabilities

c)

Liabilities = Assets - Capital

d)

Liabilities = Assets + Capital

32.

Debit the receiver, credit the giver is rule for

a)

Personal account

b)

Real account

c)

Nominal account

d)

representative personal account

33.

Profit and loss account starts with

a)

Net Profit

b)

Gross Profit

c)

Net Loss

d)

None of the above

34.

In fund flow statement, repayment of long term loan is,

a)

application of fund

b)

source of fund

c)

source of cash

d)

application of cash

35.

What is the full form of GST?

a)

Goods and Services Tax

b)

Good and Serve Tax

c)

Goods and State Tax

d)

Goods and Supply Tax

36.

Which is the first country in the world to implement GST?

a)

France 1954

b)

UK 1950

c)

India 2017

d)

Japan 1967

37.

Which is the first state to pass GST in India?

a)

Assam

b)

Kolkata

c)

Tamil nadu

d)

Delhi

38.

India's GST is based on which country's model?

a)

Canada

b)

UK

c)

Italy

d)

Italy

39.

When was the Goods and Services Tax GST levied in India?

a)

1st July 2017

b)

1st April 2017

c)

1st August 2016

d)

31st July 2017

40.

How many countries have adopted GST?

a)

160

b)

170

c)

150

d)

161