Cash Book MCQs – T4Tutorials.com

1. Which of the following is profitability ratio?
(a) Return on Capital employed
(b) Current ratio
(c) Gross markup
(d) Net profit margin
Return on Capital employed
2. Which of the following is not the correct to calculate stock turnover?
(a) Cost of goods sold/average stock
(b) Gross profit cost of goods sold
(c) Current assets/current habilities
(d) Gross profit/net sales
Gross profit cost of goods sold
3. The ratios use to measure liquidity are: Return on Capital employed
11. Acid test ratio
III. Gross margin
IV. Debtors turn over
(a) I and II
(b) I and III
II and IV (d)
(c) II and III
I and II
4. In which journal are debit notes are entered?
(a) Returns outwards
(b) Returns inwards
(c) Sales
(d) Purchases
Purchases
5. Which of the following contracts should be entered in the Petty Cash Book?
(a) Salary payments
(b) Stock issued
(c) Subscriptions
(d) Travelling expenses
Travelling expenses
6. The statement that gives the financial performance of a business at a specified date is called a
(a) Cash flow
b) Balance
( sheet
(c) Income statement
(d) Trial balance
Income statement
7. Which of the following cannot be classified as a capital expenditure?
(a) Maintenance of a truck
(b) Purchase of a motor vehicle
(c) Installation of new computers
(d) Purchase of land
Maintenance of a truck
8. What is Karlene’s working capital?
(a) $20.000
(b) $23.000
(c) $27000
(d) $30000
$27000
9 What is Karlene’s capital at close?
(a) 5620,000
(b) $621,000
(c) $637,000
(d) 5647,090
$621,000
10. Which of the following is the presentation of Karlene’s balance. sheet?
(a) Vertical
(b) Horizontal
(c) Liquidity
(d) Periodic
Horizontal
11. Which of the financial statements will the $6000 be transferred to?
(a) Profit and Loss account
(b) Trading account
(c) Balance sheet
(d) Cash flow
Profit and Loss account
12. A motor van valued at $.200,000 is depreciated at 15% using the straight line method. What is the total depreciation after 3 years?
(a) $30,000
(b) 560,000
(c) $90,000
(d) 5110,000
$30,000
13. Which of the following expenses is a non-monetary considered expense?
(a) Depreciation (b) Bad debts
(c) Salary
(d) Postage and stationery
Salary
14. The balance of an expense account is transferred to the:
(a) Balance Sheet
(b) Cash Flow
(c) Profit and Loss account
Balance Sheet
15. Which of the following factors will be used to calculate profit?
Cost of goods sold
II. Wages and salarie
III. Machinery
IV. Closing stock
(b) I and II
(a) 1
(d) I and IV
(c) I and III
I and III
16. In inventory received is the first to leave the warehouse is called:
(a) First in first out
(b) Last in first out
(c) Average cost
(d) Next in-first out
Next in-first out
17.Goods are purchased a new average cost of inventory is calculated in method is called:
(b) First in first out
(c) Last in first out
(d) Average cost
‘Next in first out
18. Which of the following methods will value ending inventory at older rates?
(a) Average cost
(b) First in first out
(c) Last in first out
(d) Next in first out
Next in first out
19. Which of the following stock valuation methods will produced the highest profit?
(a) Average cost
(b) Last in first out
(c) Next in first out
(d) First in first out
Next in first out
20. What is the working capital of Carla’s Company Limited?
(a) $5000
(b) $8 000
(c) $9000
(d) $13000
$13000
21. What is the acid test ratio of Carla’s Company Limited?
(a) 1.83:1
(b) 2.09:1
(c) 2.16:1
(d) 2.45:1
2.16:1
22. Each ‘T’ account contains the exac amount owing to a supplier:
(a) Sales ledger
(b) Purchases ledger
(c) General ledger
(d) Cash book
Purchases ledger
23. The Trial balance:
(a) Is a listing of all the general ledger account balances at a particular date
(b) Is a listing of all the assets and expenses at a particular date
(c) Is a summary of all revenues and expenses at a particular date
(d) is a summary of cash inflows and cash outflows at a particular date
Is a listing of all the general ledger account balances at a particular date
24. Which of the following are Real accounts?
I Land
II Equipment
III Creditors
IV Cash
(a) I and II only
(b) I, II and III
(d) I, III and IV
(d) I, II and IV
I, II and IV

Cash Book MCQs
By: Prof. Dr. Fazal Rehman Shamil | Last updated: July 28, 2024

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