Accounting MCQs with answers Page - 17

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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A

Admin • 833.24K Points
Coach

Q. Which of the following is recorded in the Purchase Book?

  • (A) Cash purchases
  • (B) Credit purchases of goods
  • (C) Credit purchases of machinery
  • (D) All credit purchases

A

Admin • 833.24K Points
Coach

Q. Which concept assumes that a business will continue for a long time?

  • (A) Business Entity
  • (B) Going Concern
  • (C) Cost Concept
  • (D) Consistency

A

Admin • 833.24K Points
Coach

Q. The amount spent on repairing an existing asset is:

  • (A) Revenue expenditure
  • (B) Capital expenditure
  • (C) Deferred revenue expenditure
  • (D) Wasting expenditure

A

Admin • 833.24K Points
Coach

Q. Which of the following errors is not disclosed by trial balance?

  • (A) Error of omission
  • (B) Wrong totaling of a ledger
  • (C) Wrong balancing
  • (D) Wrong posting of an amount

A

Admin • 833.24K Points
Coach

Q. Credit purchases are recorded in the:

  • (A) Cash Book
  • (B) Sales Book
  • (C) Purchase Book
  • (D) Journal Proper

A

Admin • 833.24K Points
Coach

Q. When the debit and credit aspects of a transaction are recorded in the same account, it is called:

  • (A) Error of principle
  • (B) Error of omission
  • (C) Error of commission
  • (D) Compensating error

A

Admin • 833.24K Points
Coach

Q. When wages are paid for installation of machinery, it is:

  • (A) Revenue expenditure
  • (B) Capital expenditure
  • (C) Deferred revenue expenditure
  • (D) Irregular expenditure

A

Admin • 833.24K Points
Coach

Q. Goods given as charity should be debited to:

  • (A) Sales A/c
  • (B) Charity A/c
  • (C) Purchases A/c
  • (D) Capital A/c

A

Admin • 833.24K Points
Coach

Q. If the debit side of the trial balance is greater than the credit side, it indicates:

  • (A) Loss
  • (B) Profit
  • (C) Debit balance error
  • (D) Excess of assets or expenses

A

Admin • 833.24K Points
Coach

Q. Profit and Loss account shows the:

  • (A) Financial position of the firm
  • (B) Cash position of the firm
  • (C) Operating results of the firm
  • (D) Capital position of the firm

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