Accounting MCQs with answers Page - 1

Here, you will find a collection of MCQ questions on Accounting. Go through these questions to enhance your preparation for upcoming examinations and interviews.

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Q. Which accounting principle requires that revenue be recognized when earned, regardless of when received?

  • (A) Matching Principle
  • (B) Revenue Recognition Principle
  • (C) Conservatism Principle
  • (D) Materiality Principle

A

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Q. Which of the following is not a nominal account?

  • (A) Rent A/c
  • (B) Salary A/c
  • (C) Cash A/c
  • (D) Commission Received A/c

A

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Q. Which financial statement shows a company’s financial position at a specific point in time?

  • (A) Profit and Loss Account
  • (B) Cash Flow Statement
  • (C) Balance Sheet
  • (D) Statement of Retained Earnings

A

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Q. Which of the following is classified as a current asset?

  • (A) Building
  • (B) Patent
  • (C) Inventory
  • (D) Land

A

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Q. Double entry system of accounting is based on:

  • (A) Accounting Equation
  • (B) Matching Concept
  • (C) Going Concern Concept
  • (D) Cash Basis

A

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Q. Which of the following is not part of the journal entry for depreciation?

  • (A) Debit Depreciation Expense
  • (B) Credit Accumulated Depreciation
  • (C) Debit Fixed Asset
  • (D) None of the above

A

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Q. Prepaid expenses are classified under:

  • (A) Liabilities
  • (B) Revenue
  • (C) Current Assets
  • (D) Equity

A

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Q. Which account is credited when goods are sold on credit?

  • (A) Cash A/c
  • (B) Sales A/c
  • (C) Debtors A/c
  • (D) Purchases A/c

A

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Q. Capital introduced by the owner is credited to:

  • (A) Drawings A/c
  • (B) Cash A/c
  • (C) Capital A/c
  • (D) Sales A/c

A

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Q. Outstanding rent is shown in the balance sheet under:

  • (A) Current Assets
  • (B) Non-Current Liabilities
  • (C) Current Liabilities
  • (D) Contingent Liabilities

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