Accounting MCQs with answers Page - 22

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. Accrued interest is:

  • (A) An income
  • (B) An expense
  • (C) A liability
  • (D) An asset

A

Admin • 802.91K Points
Coach

Q. Bank overdraft is shown as:

  • (A) Asset
  • (B) Liability
  • (C) Expense
  • (D) Income

A

Admin • 802.91K Points
Coach

Q. The accounting concept that prevents overstatement of assets is:

  • (A) Cost concept
  • (B) Consistency concept
  • (C) Conservatism concept
  • (D) Dual aspect concept

A

Admin • 802.91K Points
Coach

Q. The double-entry system was developed by:

  • (A) Luca Pacioli
  • (B) Adam Smith
  • (C) Karl Marx
  • (D) Amartya Sen

A

Admin • 802.91K Points
Coach

Q. Cash discount allowed to customers is:

  • (A) Income
  • (B) Expense
  • (C) Asset
  • (D) Liability

A

Admin • 802.91K Points
Coach

Q. Which of the following is an example of intangible asset?

  • (A) Stock
  • (B) Debtors
  • (C) Goodwill
  • (D) Building

A

Admin • 802.91K Points
Coach

Q. Which concept assumes that the business and owner are two separate entities?

  • (A) Money Measurement Concept
  • (B) Business Entity Concept
  • (C) Going Concern Concept
  • (D) Dual Aspect Concept

A

Admin • 802.91K Points
Coach

Q. Which book is used for recording credit purchases of assets other than goods?

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

A

Admin • 802.91K Points
Coach

Q. Which of the following errors will affect the trial balance?

  • (A) Error of omission
  • (B) Error of principle
  • (C) Posting wrong amount on one side
  • (D) Compensating error

A

Admin • 802.91K Points
Coach

Q. What is the primary purpose of preparing a trial balance?

  • (A) To determine profit
  • (B) To locate errors
  • (C) To prepare budget
  • (D) To show financial position

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