Accounting MCQs with answers Page - 6

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

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Q. Which of the following is a non-cash item?

  • (A) Payment to suppliers
  • (B) Payment of salary
  • (C) Depreciation
  • (D) Cash sales

A

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Q. Which financial statement helps assess liquidity position?

  • (A) Income Statement
  • (B) Cash Flow Statement
  • (C) Statement of Retained Earnings
  • (D) Trial Balance

A

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Q. Closing stock is shown in the final accounts at:

  • (A) Selling price
  • (B) Cost price or market price whichever is higher
  • (C) Cost price or market price whichever is lower
  • (D) Invoice value

A

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Q. Trial balance ensures:

  • (A) All transactions are correct
  • (B) Ledger balances are equal
  • (C) Arithmetical accuracy of ledger posting
  • (D) No errors exist

A

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Q. Which side of a personal account is debited?

  • (A) Receiver
  • (B) Giver
  • (C) Expenses
  • (D) Income

A

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Q. Which is an example of fictitious asset?

  • (A) Land
  • (B) Building
  • (C) Preliminary Expenses
  • (D) Goodwill

A

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Q. If purchases are Rs. 50,000 and sales are Rs. 70,000, the gross profit is:

  • (A) Rs. 20,000
  • (B) Rs. 50,000
  • (C) Rs. 70,000
  • (D) Cannot be determined

A

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Q. Accounting year is also known as:

  • (A) Fiscal year
  • (B) Calendar year
  • (C) Tax year
  • (D) Budget year

A

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Q. Income received in advance is:

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

A

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Q. Which method is used to estimate closing inventory in the absence of physical stock count?

  • (A) FIFO Method
  • (B) LIFO Method
  • (C) Gross Profit Method
  • (D) Weighted Average Method

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