Accounting MCQs with answers Page - 4

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 not a capital expenditure?

  • (A) Purchase of machinery
  • (B) Installation charges of machinery
  • (C) Wages paid for machinery installation
  • (D) Wages paid to factory workers

A

Admin • 802.91K Points
Coach

Q. Which is the correct accounting equation?

  • (A) Assets + Liabilities = Capital
  • (B) Assets = Liabilities - Capital
  • (C) Assets = Liabilities + Capital
  • (D) Assets - Capital = Liabilities

A

Admin • 802.91K Points
Coach

Q. Provision for doubtful debts is shown on the:

  • (A) Debit side of the P&L Account
  • (B) Assets side of Balance Sheet
  • (C) Liabilities side of Balance Sheet
  • (D) Deducted from Sundry Debtors

A

Admin • 802.91K Points
Coach

Q. Petty cash book is used to record:

  • (A) Large cash transactions
  • (B) Bank transactions
  • (C) All credit transactions
  • (D) Small cash payments

A

Admin • 802.91K Points
Coach

Q. An entry passed in the books of accounts twice is an example of:

  • (A) Error of Commission
  • (B) Error of Omission
  • (C) Compensating Error
  • (D) Error of Duplication

A

Admin • 802.91K Points
Coach

Q. Sales to Mohan were wrongly recorded as purchase. This is:

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

A

Admin • 802.91K Points
Coach

Q. Which account is used to rectify one-sided errors?

  • (A) Suspense A/c
  • (B) Profit & Loss A/c
  • (C) Trading A/c
  • (D) Cash A/c

A

Admin • 802.91K Points
Coach

Q. The matching concept is based on the accounting period concept and is used to match:

  • (A) Assets and Liabilities
  • (B) Revenues and Expenses
  • (C) Income and Capital
  • (D) Debtors and Creditors

A

Admin • 802.91K Points
Coach

Q. Which account is debited when insurance premium is paid?

  • (A) Insurance A/c
  • (B) Cash A/c
  • (C) Capital A/c
  • (D) Outstanding Insurance A/c

A

Admin • 802.91K Points
Coach

Q. Provision for depreciation appears on the:

  • (A) Credit side of P&L Account
  • (B) Debit side of P&L Account
  • (C) Assets side of Balance Sheet
  • (D) Deducted from concerned asset in Balance Sheet

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