Which of the following is a current liability?

Related Mcqs:

1. Liability are arisen from which of the following events?

   A. Present event
   B. Future event
   C. Past event
   D. None of them

2. Which of the following is a liability?

   A. Cash
   B. Equipment
   C. Debtors
   D. Creditors

3. Which of the following is not a contingent liability?

   A. Debts included in Sundry Debtors which are doubtful in nature
   B. Uncalled liability on partly paid shares
   C. Claims against the company not acknowledged as debts
   D. Arrears of fixed cumulative dividend

4. The normal balance of liability account is____________?

   A. Debit balance
   B. Credit balance
   C. Cash balance
   D. Neither debit nor credit balance

5. The excess of current assets over current liabilities is called:

   A. Working Capital
   B. Circulating capital
   C. Fixed capital
   D. Trading capital

6. Current assets – Current liabilities=?

   A. Capital
   B. Absorbed capital
   C. Net assets
   D. Net working capital

7. The beginnings inventory of the current year is overstated by 5,000 and closing inventory is overstated by 12,000. These errors will cause the net income for the current year by

   A. 17,000 (overstated.
   B. 12,000 (understated.
   C. 7,000 (overstated.
   D. 7,000 (understated.

8. Which of the following are/is a current asset?

   A. Sundry Debtors
   B. Stock
   C. Prepaid insurance
   D. All of A. B. and C. above

9. Which of the following are current assets of a business?

   i. Income received in advance
   ii. Stock
   iii. Debtors
   iv. Pre-paid expenses
   v. Accrued income

   A. Both (i) and (iv) above
   B. Both (ii) and (iii) above
   C. (i),(ii) and (iii) above
   D. (ii),(iii),(iv) and (v) above

10. Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation?

    A. Added, Reduced
    B. Added, Added
    C. Deducted, Added
    D. Deducted, Deducted