Accounting MCQs with answers Page - 2

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 of the following is an intangible asset?

  • (A) Building
  • (B) Furniture
  • (C) Goodwill
  • (D) Inventory

A

Admin • 802.91K Points
Coach

Q. What is the effect of a debit to an expense account?

  • (A) Increases the expense
  • (B) Decreases the expense
  • (C) Increases capital
  • (D) Increases revenue

A

Admin • 802.91K Points
Coach

Q. Purchase returns are recorded in:

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

A

Admin • 802.91K Points
Coach

Q. Which document is prepared to find the arithmetic accuracy of accounts?

  • (A) Trial Balance
  • (B) Ledger
  • (C) Journal
  • (D) Invoice

A

Admin • 802.91K Points
Coach

Q. Bank Reconciliation Statement is prepared to:

  • (A) Compare cash book and ledger
  • (B) Compare bank statement and trial balance
  • (C) Compare cash book and bank statement
  • (D) Compare journal and ledger

A

Admin • 802.91K Points
Coach

Q. The principle of 'prudence' is also known as:

  • (A) Materiality
  • (B) Conservatism
  • (C) Consistency
  • (D) Matching

A

Admin • 802.91K Points
Coach

Q. The debit balance of a personal account represents:

  • (A) Income
  • (B) Liability
  • (C) Receivable
  • (D) Capital

A

Admin • 802.91K Points
Coach

Q. Which of the following is not a type of error in accounting?

  • (A) Error of Commission
  • (B) Error of Omission
  • (C) Error of Principle
  • (D) Error of Trial

A

Admin • 802.91K Points
Coach

Q. If capital is Rs. 50,000 and liabilities are Rs. 30,000, then assets are:

  • (A) Rs. 80,000
  • (B) Rs. 20,000
  • (C) Rs. 50,000
  • (D) Rs. 30,000

A

Admin • 802.91K Points
Coach

Q. What does a credit balance in the bank column of the cash book indicate?

  • (A) Cash at bank
  • (B) Bank overdraft
  • (C) Cash in hand
  • (D) Error

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