Accounting MCQs with answers Page - 19

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 • 802.91K Points
Coach

Q. Which account is debited when cash is withdrawn from bank for office use?

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

A

Admin • 802.91K Points
Coach

Q. Income received in advance is a:

  • (A) Current asset
  • (B) Fixed asset
  • (C) Current liability
  • (D) Long-term liability

A

Admin • 802.91K Points
Coach

Q. The main objective of financial statements is to:

  • (A) Determine selling price
  • (B) Provide information about financial performance and position
  • (C) Calculate tax
  • (D) Prepare budgets

A

Admin • 802.91K Points
Coach

Q. Double-entry system of accounting is based on the principle of:

  • (A) One aspect of each transaction
  • (B) Recording only credit transactions
  • (C) Two-fold aspect
  • (D) Single-sided accounting

A

Admin • 802.91K Points
Coach

Q. Which of the following accounts is personal in nature?

  • (A) Cash A/c
  • (B) Rent A/c
  • (C) Capital A/c
  • (D) Machinery A/c

A

Admin • 802.91K Points
Coach

Q. Which statement shows inflow and outflow of cash?

  • (A) Profit & Loss Account
  • (B) Cash Flow Statement
  • (C) Balance Sheet
  • (D) Fund Flow Statement

A

Admin • 802.91K Points
Coach

Q. A liability arises when:

  • (A) Cash is received
  • (B) Goods are sold
  • (C) Goods are purchased on credit
  • (D) Assets are depreciated

A

Admin • 802.91K Points
Coach

Q. Accounting to be useful must be:

  • (A) Complicated
  • (B) Conservative
  • (C) Understandable
  • (D) Ambiguous

A

Admin • 802.91K Points
Coach

Q. Bank charges are recorded on the:

  • (A) Debit side of bank column in cash book
  • (B) Credit side of bank column in cash book
  • (C) Debit side of cash column in cash book
  • (D) Credit side of cash column in cash book

A

Admin • 802.91K Points
Coach

Q. Bad debts recovered is shown in:

  • (A) Debit side of Profit & Loss A/c
  • (B) Credit side of Profit & Loss A/c
  • (C) Liabilities side of Balance Sheet
  • (D) Assets side of Balance Sheet

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