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Balance Sheet MCQ Questions & Answers

Balance Sheet MCQs : This section focuses on the "Balance Sheet". These Multiple Choice Questions (MCQs) should be practiced to improve the Balance Sheet skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.

Question 1

A firm buys products but does not pay to suppliers instantly

A. Account Receivable
B. Account Payable
C. Accumulated Liabilities
D. Current Liabilities

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Question 2

Earnings that have a cumulative amount and are not paid to the stockholder as a dividend is known as

A. Common Earnings
B. Preferred Earnings
C. Non-paid Earnings
D. Retained Earnings

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Question 3

Financial securities which can be changed into cash to their book value price are categorized as

A. Short-term Investments
B. Inventories
C. Long-term Investments
D. Cash Equivalents

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Question 4

In a balance sheet, the total of common stock and retained earnings are examined as

A. Common Equity
B. Due Equity
C. Preferred Equity
D. Common Perpetuity

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Question 5

In the Income statement, the process of recording inventory that gives a lower cost of a commodity sold is categorized as

A. First Out Receivable
B. Last in First Out
C. Last Out Receivable
D. First in First Out

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Question 6

In the situation of bankruptcy, a stock which is recorded above common stock and below debt account is

A. Preferred Stock
B. Debt Liabilities
C. Common Liabilities
D. Hybrid Stock

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Question 7

Information that is used by investors for forecasting future earnings is documented in

A. Annual Report
B. Five Years Report
C. Exchange Report
D. Stock Report

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Question 8

Inventories, cash and equivalents, and accounts receivables are listed as

A. Earnings on Income Statement
B. Payments on Income Statement
C. Assets on the Balance Sheet
D. Liabilities on the Balance Sheet

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Question 9

On balance sheet, accruals, notes payables, and account payable are listed under which category?

A. Current Liabilities
B. Accumulated Liabilities
C. Noncurrent Liabilities
D. Accrued Liabilities

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Question 10

Salaries and wages employees are recorded in which accounts are called

A. Accruals Accounts
B. Accrued Expenses
C. Zero Liabilities
D. Both A and B

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