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Balance Sheet in Finance MCQs PDF Download – Prep Test

MCQ 1: A company purchases goods but does not pay payments to the suppliers immediately and record them as:

  1. account payable
  2. account receivable
  3. current liabilities
  4. accumulated liabilities

MCQ 2: In the balance sheet, the sum of retained earnings and common stock are considered as:

  1. preferred equity
  2. due equity
  3. common perpetuity
  4. common equity

MCQ 3: The method of inventory recording gives lower cost of goods sold in the income statement is classified as:

  1. last in first out
  2. last out receivable
  3. first out receivable
  4. first in first out

MCQ 4: The financial securities that can be converted into cash at closing to their book value price are classified as:

  1. inventories
  2. short-term investments
  3. cash equivalents
  4. long-term investments

MCQ 5: The earnings that are not paid as dividends to stockholders and have cumulative amount are classified as:

  1. non-paid earnings
  2. common earnings
  3. retained earnings
  4. preferred earnings

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