Accounting Multiple Choice Questions and Answers

31. Liquid or Quick assets =

1. Current assets – (stock + work in progress)
2. Current assets + stock + work in progress
3. (Current assets + stock) + work in progress
4. (Current assets + work in progress) – stock

32. The liabilities that are payable in more than a year and are not be liquidated from current assets

1. Current liabilities
2. Fixed liabilities
3. Contingent liabilities
4. All of the above

33. The debts, which are to be repaid within a short period (year or less) are known as

1. Current liabilities
2. Fixed liabilities
3. Contingent liabilities
4. All of the above

34. The following is also known as External Internal Equity ratio

1. Current ratio
2. Acid test ratio
3. Debt Equity ratio
4. Debt service coverage ratio

35. Balance sheets are prepared

1. Daily
2. Weekly
3. Monthly
4. Annually

36. Real accounts records

1. Dealings with creditors or debtors
2. Dealings in commodities
3. Gains and losses
4. All of the above

37. Asset accounts have what type of balance?

1. Debit
2. Credit
3. Contra
4. All of the above

38. A contra asset account has what type of balance?

1. Debit
2. Credit
3. Contra
4. All of the above

39. The accrual basis of accounting records revenues when they are:

1. Earned
2. Collected
3. Contracted
4. Readily available for use

40. Which account increases equity?

1. Expenses
2. Withdrawals
3. Treasury stock
4. Revenues