Balance Sheet in Finance Multiple Choice Questions with Answers – PDF Download

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