Balance Sheet in Finance MCQ (Multiple Choice Questions) PDF Download

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

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

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

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

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