QID #25908
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which statement best explains Closing stock?
A
Inventory remaining unsold at the end of an accounting period
B
Receivable considered irrecoverable
C
Assets = Liabilities + Equity
D
Expenditure creating or improving a long-term asset or benefit
Correct Answer: A. Inventory remaining unsold at the end of an accounting period
Question: Which statement best explains Closing stock?
A. Inventory remaining unsold at the end of an accounting period
B. Receivable considered irrecoverable
C. Assets = Liabilities + Equity
D. Expenditure creating or improving a long-term asset or benefit
Correct Answer: A. Inventory remaining unsold at the end of an accounting period
Explanation: Closing stock: Inventory remaining unsold at the end of an accounting period
QID #25907
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which of the following is best described as: Inventory remaining unsold at the end of an accounting period
A
Income statement
B
Straight-line method
C
Current asset
D
Closing stock
Correct Answer: D. Closing stock
Question: Which of the following is best described as: Inventory remaining unsold at the end of an accounting period
A. Income statement
B. Straight-line method
C. Current asset
D. Closing stock
Correct Answer: D. Closing stock
Explanation: The correct answer is Closing stock. Inventory remaining unsold at the end of an accounting period
QID #25906
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which statement best explains Bank reconciliation statement?
A
Statement reconciling differences between bank balance per books and bank statement
B
Expenditure creating or improving a long-term asset or benefit
C
Current assets minus current liabilities
D
Book containing individual accounts to which journal entries are posted
Correct Answer: A. Statement reconciling differences between bank balance per books and bank statement
Question: Which statement best explains Bank reconciliation statement?
A. Statement reconciling differences between bank balance per books and bank statement
B. Expenditure creating or improving a long-term asset or benefit
C. Current assets minus current liabilities
D. Book containing individual accounts to which journal entries are posted
Correct Answer: A. Statement reconciling differences between bank balance per books and bank statement
Explanation: Bank reconciliation statement: Statement reconciling differences between bank balance per books and bank statement
QID #25905
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which of the following is best described as: Statement reconciling differences between bank balance per books and bank statement
A
Bank reconciliation statement
B
Unearned income
C
Cash basis
D
Revenue expenditure
Correct Answer: A. Bank reconciliation statement
Question: Which of the following is best described as: Statement reconciling differences between bank balance per books and bank statement
A. Bank reconciliation statement
B. Unearned income
C. Cash basis
D. Revenue expenditure
Correct Answer: A. Bank reconciliation statement
Explanation: The correct answer is Bank reconciliation statement. Statement reconciling differences between bank balance per books and bank statement
QID #25904
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which statement best explains Working capital?
A
Current assets minus current liabilities
B
Every transaction has at least two corresponding debit-credit effects
C
Income earned but not yet received
D
Expenditure creating or improving a long-term asset or benefit
Correct Answer: A. Current assets minus current liabilities
Question: Which statement best explains Working capital?
A. Current assets minus current liabilities
B. Every transaction has at least two corresponding debit-credit effects
C. Income earned but not yet received
D. Expenditure creating or improving a long-term asset or benefit
Correct Answer: A. Current assets minus current liabilities
Explanation: Working capital: Current assets minus current liabilities
QID #25903
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which of the following is best described as: Current assets minus current liabilities
A
Working capital
B
Accrual basis
C
Journal
D
Revenue expenditure
Correct Answer: A. Working capital
Question: Which of the following is best described as: Current assets minus current liabilities
A. Working capital
B. Accrual basis
C. Journal
D. Revenue expenditure
Correct Answer: A. Working capital
Explanation: The correct answer is Working capital. Current assets minus current liabilities
QID #25902
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which statement best explains Current liability?
A
Current assets minus current liabilities
B
Assets = Liabilities + Equity
C
Obligation expected to be settled within the operating cycle or specified short period
D
Payment made in advance for a future accounting period
Correct Answer: C. Obligation expected to be settled within the operating cycle or specified short period
Question: Which statement best explains Current liability?
A. Current assets minus current liabilities
B. Assets = Liabilities + Equity
C. Obligation expected to be settled within the operating cycle or specified short period
D. Payment made in advance for a future accounting period
Correct Answer: C. Obligation expected to be settled within the operating cycle or specified short period
Explanation: Current liability: Obligation expected to be settled within the operating cycle or specified short period
QID #25901
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which of the following is best described as: Obligation expected to be settled within the operating cycle or specified short period
A
Current liability
B
Current asset
C
Outstanding expense
D
Cash basis
Correct Answer: A. Current liability
Question: Which of the following is best described as: Obligation expected to be settled within the operating cycle or specified short period
A. Current liability
B. Current asset
C. Outstanding expense
D. Cash basis
Correct Answer: A. Current liability
Explanation: The correct answer is Current liability. Obligation expected to be settled within the operating cycle or specified short period
QID #25900
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which statement best explains Current asset?
A
Estimate of receivables that may become uncollectible
B
Receivable considered irrecoverable
C
Statement reconciling differences between bank balance per books and bank statement
D
Asset expected to be realized, sold or consumed within the operating cycle or specified short period
Correct Answer: D. Asset expected to be realized, sold or consumed within the operating cycle or specified short period
Question: Which statement best explains Current asset?
A. Estimate of receivables that may become uncollectible
B. Receivable considered irrecoverable
C. Statement reconciling differences between bank balance per books and bank statement
D. Asset expected to be realized, sold or consumed within the operating cycle or specified short period
Correct Answer: D. Asset expected to be realized, sold or consumed within the operating cycle or specified short period
Explanation: Current asset: Asset expected to be realized, sold or consumed within the operating cycle or specified short period
QID #25899
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which of the following is best described as: Asset expected to be realized, sold or consumed within the operating cycle or specified short period
A
Accrual basis
B
Current asset
C
Outstanding expense
D
Balance sheet
Correct Answer: B. Current asset
Question: Which of the following is best described as: Asset expected to be realized, sold or consumed within the operating cycle or specified short period
A. Accrual basis
B. Current asset
C. Outstanding expense
D. Balance sheet
Correct Answer: B. Current asset
Explanation: The correct answer is Current asset. Asset expected to be realized, sold or consumed within the operating cycle or specified short period
QID #25898
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which statement best explains Income statement?
A
Income earned but not yet received
B
Book containing individual accounts to which journal entries are posted
C
Inventory remaining unsold at the end of an accounting period
D
Statement showing revenues and expenses for a period
Correct Answer: D. Statement showing revenues and expenses for a period
Question: Which statement best explains Income statement?
A. Income earned but not yet received
B. Book containing individual accounts to which journal entries are posted
C. Inventory remaining unsold at the end of an accounting period
D. Statement showing revenues and expenses for a period
Correct Answer: D. Statement showing revenues and expenses for a period
Explanation: Income statement: Statement showing revenues and expenses for a period
QID #25897
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which of the following is best described as: Statement showing revenues and expenses for a period
A
Income statement
B
Journal
C
Bank reconciliation statement
D
Accrual basis
Correct Answer: A. Income statement
Question: Which of the following is best described as: Statement showing revenues and expenses for a period
A. Income statement
B. Journal
C. Bank reconciliation statement
D. Accrual basis
Correct Answer: A. Income statement
Explanation: The correct answer is Income statement. Statement showing revenues and expenses for a period
QID #25896
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which statement best explains Balance sheet?
A
Statement reconciling differences between bank balance per books and bank statement
B
Expense incurred but not yet paid
C
Payment made in advance for a future accounting period
D
Statement of financial position showing assets, liabilities and equity at a point in time
Correct Answer: D. Statement of financial position showing assets, liabilities and equity at a point in time
Question: Which statement best explains Balance sheet?
A. Statement reconciling differences between bank balance per books and bank statement
B. Expense incurred but not yet paid
C. Payment made in advance for a future accounting period
D. Statement of financial position showing assets, liabilities and equity at a point in time
Correct Answer: D. Statement of financial position showing assets, liabilities and equity at a point in time
Explanation: Balance sheet: Statement of financial position showing assets, liabilities and equity at a point in time
QID #25895
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which of the following is best described as: Statement of financial position showing assets, liabilities and equity at a point in time
A
Balance sheet
B
Trial balance
C
Accrued income
D
Depreciation
Correct Answer: A. Balance sheet
Question: Which of the following is best described as: Statement of financial position showing assets, liabilities and equity at a point in time
A. Balance sheet
B. Trial balance
C. Accrued income
D. Depreciation
Correct Answer: A. Balance sheet
Explanation: The correct answer is Balance sheet. Statement of financial position showing assets, liabilities and equity at a point in time
QID #25894
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which statement best explains Provision for doubtful debts?
A
Expenditure whose benefit is generally consumed within the current accounting period
B
Depreciation method applying a rate to the carrying amount of an asset
C
Estimate of receivables that may become uncollectible
D
Book containing individual accounts to which journal entries are posted
Correct Answer: C. Estimate of receivables that may become uncollectible
Question: Which statement best explains Provision for doubtful debts?
A. Expenditure whose benefit is generally consumed within the current accounting period
B. Depreciation method applying a rate to the carrying amount of an asset
C. Estimate of receivables that may become uncollectible
D. Book containing individual accounts to which journal entries are posted
Correct Answer: C. Estimate of receivables that may become uncollectible
Explanation: Provision for doubtful debts: Estimate of receivables that may become uncollectible
QID #25893
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which of the following is best described as: Estimate of receivables that may become uncollectible
A
Current liability
B
Provision for doubtful debts
C
Journal
D
Straight-line method
Correct Answer: B. Provision for doubtful debts
Question: Which of the following is best described as: Estimate of receivables that may become uncollectible
A. Current liability
B. Provision for doubtful debts
C. Journal
D. Straight-line method
Correct Answer: B. Provision for doubtful debts
Explanation: The correct answer is Provision for doubtful debts. Estimate of receivables that may become uncollectible
QID #25892
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which statement best explains Bad debt?
A
Book of original entry in which transactions are first recorded chronologically
B
Receivable considered irrecoverable
C
Depreciation method charging an equal amount each year, subject to residual value
D
Inventory remaining unsold at the end of an accounting period
Correct Answer: B. Receivable considered irrecoverable
Question: Which statement best explains Bad debt?
A. Book of original entry in which transactions are first recorded chronologically
B. Receivable considered irrecoverable
C. Depreciation method charging an equal amount each year, subject to residual value
D. Inventory remaining unsold at the end of an accounting period
Correct Answer: B. Receivable considered irrecoverable
Explanation: Bad debt: Receivable considered irrecoverable
QID #25891
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which of the following is best described as: Receivable considered irrecoverable
A
Trial balance
B
Bad debt
C
Prepaid expense
D
Written-down value method
Correct Answer: B. Bad debt
Question: Which of the following is best described as: Receivable considered irrecoverable
A. Trial balance
B. Bad debt
C. Prepaid expense
D. Written-down value method
Correct Answer: B. Bad debt
Explanation: The correct answer is Bad debt. Receivable considered irrecoverable
QID #25890
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which statement best explains Unearned income?
A
Amount received before the related income is earned
B
Statement of financial position showing assets, liabilities and equity at a point in time
C
Book of original entry in which transactions are first recorded chronologically
D
Receivable considered irrecoverable
Correct Answer: A. Amount received before the related income is earned
Question: Which statement best explains Unearned income?
A. Amount received before the related income is earned
B. Statement of financial position showing assets, liabilities and equity at a point in time
C. Book of original entry in which transactions are first recorded chronologically
D. Receivable considered irrecoverable
Correct Answer: A. Amount received before the related income is earned
Explanation: Unearned income: Amount received before the related income is earned
QID #25889
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium
Which of the following is best described as: Amount received before the related income is earned
A
Provision for doubtful debts
B
Accrual basis
C
Written-down value method
D
Unearned income
Correct Answer: D. Unearned income
Question: Which of the following is best described as: Amount received before the related income is earned
A. Provision for doubtful debts
B. Accrual basis
C. Written-down value method
D. Unearned income
Correct Answer: D. Unearned income
Explanation: The correct answer is Unearned income. Amount received before the related income is earned
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