Balance Sheet Online Test from Our Balance Sheet MADE Easy eBook

Following are the questions which I have asked from our Balance Sheet MADE Easy eBook.  

Question : - 1.  Live Stock is 


a) Current asset


b) current liability


c) Fixed asset


d) Fixed liability


Question : - 2 Design is 

a) factitious asset
b) tangible asset
c) intangible asset
d) off balance sheet asset


Question : - 3 Consolidated balance sheet is 

a)   { assets of holding company - assets of subsidiary company } + {Liabilities of holding company - Liabilities of subsidiary company }

b)   { assets of holding company - assets of subsidiary company } = {Liabilities of holding company - Liabilities of subsidiary company }

c) { assets of holding company + assets of subsidiary company } = {Liabilities of holding company + Liabilities of subsidiary company }

d)   { assets of holding company } = {Liabilities of holding company  }

Question : - 4 Balance sheet is prepared 

a) Desire of accountant
b) no need of passing adjustment entries for preparing balance sheet.
c) before adjustment entries
d) after adjustment entries

Question : - 5 Credit default Swap is 

a) fixed asset
b) current asset
c) fixed liability
d) off balance sheet asset

Question : - 6 How can auditor audit bank balance showing in balance sheet

a) By checking balance of bank as per bank statement
b) By checking balance of bank as per bank account in company books
c) By checking balance of bank the expenses report of income statement.
d) By checking balance of bank as per bank statement and reconciliation statement of bank

Question : - 7. How to find the use of fresh capital in company

a) By comparing capital and fixed assets of two year balance sheet
b) By  fixed assets of two year balance sheet

c) By comparing current assets of two year balance sheet

d) By comparing liabilities  of two year balance sheet

Question : - 8. Formula of debtor velocity is 


a) = total debtors / Credit sales X No. of months in a year
b)  = Cash sale / Credit sales X No. of months in a year

c) = total creditor / Credit sales X No. of months in a year

d) = total current asset / Credit sales X No. of months in a year

Question : - 9 Why does share capital appear on the liabilities side of balance sheet 

a) because Total assets = Total liabilities = Total outside liabilities + Total capital
b) because capital can be used for employee's personal need
c) because it is also outside liability
d) because it is application of fund

Question : - 10. How to show loss on sale of goods of business in accounting equation

a) Not to show anywhere
b) In liability side, we decrease capital and in asset side, we decrease cost of goods from stock and add in cash if cash sale and add in debtor if credit sale.
c) Only decrease capital
d) Above all are wrong

If you want to clear this test, you need to get our Balance Sheet MADE Easy eBook or Enroll Our Online Accounting Course.

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