Accounting MCQs with answers Page - 26

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 principle helps in ascertaining the correct profit by considering only actual income and expenses?

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

A

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Q. What is the primary objective of accounting?

  • (A) To calculate tax
  • (B) To determine selling price
  • (C) To provide financial information
  • (D) To prepare invoices

A

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Q. Which concept assumes a business will continue to operate indefinitely?

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

A

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Q. A transaction that increases both cash and capital is:

  • (A) Rent paid
  • (B) Goods purchased
  • (C) Owner invested cash
  • (D) Wages paid

A

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Q. Goods purchased on credit are recorded in:

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

A

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Q. Which account will be debited when furniture is purchased for office use?

  • (A) Cash A/c
  • (B) Furniture A/c
  • (C) Purchase A/c
  • (D) Capital A/c

A

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Q. Drawings by the owner reduce the:

  • (A) Assets
  • (B) Expenses
  • (C) Liabilities
  • (D) Capital

A

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Q. Which book is also known as the book of original entry?

  • (A) Ledger
  • (B) Journal
  • (C) Cash Book
  • (D) Trial Balance

A

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Q. A trial balance is prepared to:

  • (A) Find net profit
  • (B) Prepare balance sheet
  • (C) Check arithmetic accuracy
  • (D) Record transactions

A

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Q. Sales of goods to Mohan on credit will be recorded as:

  • (A) Mohan A/c Dr. To Sales A/c
  • (B) Sales A/c Dr. To Mohan A/c
  • (C) Cash A/c Dr. To Sales A/c
  • (D) Sales A/c Dr. To Cash A/c

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