accounting mcqs

MCQS	Submitted By
Q: The balance of petty cash book is ? Answer: assets Test Selected: fpsc senior auditor test	Muhammad Faisal Awan
Q: The Difference between cost & allowance for depreciation is known as ? A: Resale Value B: Write - of value C: Saleage value D: Book value Test Selected: nts	Ismail Khattak
Q: The standard form of journal contains ? A: Three Coloumns B: Five Coloumns C: Six Coloumns D: Two Coloumns Test Selected: General	Imad Bahadar
Q: Expenses paid by the business is credited: ? Answer: Cash Test Selected: general	Imad Bahadar
Q: If __________ increases will increase the capital ? A: Expenses are greater than income B: Drawings C: Revenue D: None of these Test Selected: fpsc senior auditor test	Naveed Ahmed
Q: Equity can be well defined by ? A: Cash from the business B: Liability of a business C: Owner's claim on total assets D: None of these Test Selected: fpsc senior auditor test	Naveed Ahmed
Q: The gross inflow of economic benefit is called ? A: Assets B: Liabilities C: Income D: None of these Test Selected: fpsc senior auditor test	Naveed Ahmed
Q: Which of the following account with normal balance is shown at the debit side of a trial balance ? A: Rent income account B: Creditos account C: Unearned income account D: Cash account Test Selected: general	Fareed
Q: If debt balances = credit balances, trial balance only showa or check the __________ and it does not indicate that no errors were made during recording and posting ? A: Arithmetic accuracy B: Errors of commision C: Omission of economic events D: Understatements of balances Test Selected: general	Fareed
Q: Which of the following will affect the agreement of a trial balance ? A: Complete omission of a transaction B: Partial Omission of a transaction C: Error of principle D: Compensating errors Test Selected: general	Fareed
Q: Trial balance is commonly prepared ? A: Frequently during the year B: At the end of an accounting period C: At the end of a month D: At the end of a year Test Selected: general	Fareed
Q: Debit balance = Credit balance in a trial balance indicates that ? A: No error in recording transactions B: No error in posting entries to ledger accounts C: Account balances are correct D: Mathematically Capital + Liabilities = Assets Test Selected: general	Fareed
Q: Trial balance is prepared to check the accuracy of_________ ? A: Ledger accounts balances B: Balance sheet balances C: Cash flow statement balances D: Income statement balances Test Selected: general	Fareed
Q: Which of the following is true about a trial balance ? A: It lists down the balances of accounts B: It lists down the balances a balance sheet C: It is a kind of financial statement D: It is not part of accounting cycle Test Selected: fpsc senior auditor test	Amir
Q: _____________ is the common base for preparing a trial balance ? A: Ledger accounts B: General Journal C: Specialized journals D: Balance sheet Test Selected: fpsc senior auditor test	Amir
Q: If a transaction is completely omitted from the book of accounts, will it effect the agreement of a trial balance ? A: Yes B: No C: Transactions can not be omitted D: None of these Test Selected: fpsc senior auditor test	Amir
Q: Trial balance is prepared to check accuracy of _____________ ? A: Ledger account balances B: Income statement balances C: Balance sheet balances D: Cash flow statement balances Test Selected: fpsc senior auditor test	Amir
Q: Discount for quick repayment of debt is normally referred as ? A: Trade Discount B: Prompt Payment Discount C: Cash Discount D: Bulk Discount Test Selected: National Saving Officer Nts	Amjad Hussain
Q: The purpose of double entry bookkeeping is ? A: To apply the dual aspect concept B: To prepare books of prime entry accurately C: To avoid errorsq D: To record capital and revenue transaction correctly Test Selected: National Saving Officer Nts	Amjad Hussain
Q: A journal entry in which two or more account is debited or credited is referred as ? A: Journal entry B: Multi entry C: Additional entry D: Compound entry Test Selected: National Saving Officer Nts	Amjad Hussain
Q: Every business transaction effect at least _____________ accounts ? A: One B: Two C: Three D: Infinite Test Selected: National Saving Officer Nts	Amjad Hussain
Q: Specialized journals are more adequate for which type of business ? A: Small Business B: Large Business C: Sole Proprietorship D: Partership Test Selected: National Saving Officer Nts	Amjad Hussain
Q: A brief explanation recorded below every entry in General journal is commonly known as ? A: Narration B: Explaination C: Summary D: Other Information Test Selected: National Saving Officer Nts	Amjad Hussain
Q: The sale of business assets on credit is recorded in ____________ ? A: Sale Journal B: General Journal C: Cash Receipt Journal D: None Test Selected: National Saving Officer Nts	Amjad Hussain
Q: In which of the following orders data is entered in journal ? A: Alphabetical Order B: Numeric Order C: Bullets Order D: Chronological Order Test Selected: National Saving Officer Nts	Amjad Hussain
Q: The standard format of the journal does not include which of the following ? A: Asset Column B: Date Column C: Description Column D: Amount Column Test Selected: National Saving Officer Nts	Amjad Hussain
Q: The other name of journal is ? A: Ledger B: T Account C: Day Book D: Cash Book Test Selected: National Saving Officer Nts	Amjad Hussain
Q: Which of the following represent the main step(s) of accounting cycle ? A: Recording the transaction B: Classifying the transaction C: Ordering, Summarizing, Counting transaction D: Recording, Classifying, Summarizing transaction Test Selected: National Saving Officer Nts	Amjad Hussain
Q: Journals are also referred as ? A: Book of Entries B: Book of Original Entries C: T Account D: Book of economic event Test Selected: National Saving Officer Nts	Amjad Hussain
Q: General journal is a book of ________________ entries ? A: First B: Original C: Secondary D: Adjusting Test Selected: National Saving Officer Nts	Amjad Hussain
Q: The process of recording transactions in journal is called ? A: Posting B: Entry making C: Adjusting D: Journalizing Test Selected: National Saving Officer Nts	Amjad Hussain
Q: A record of financial transaction is ordered by date is called ___________ ? A: Ledger B: Journal C: Transaction D: Narration Test Selected: National Saving Officer Nts	Amjad Hussain
Q: The real accounts are accounts of assets, Liabilities and ________ ? A: Expenses B: Capital C: Cost of good sold D: none Test Selected: National Saving Officer Nts	Amjad Hussain
Q: The term "Window Dressing" means in Accounting ? A: Over valuation of assets in financial statement B: Under valuation of assets in financial statement C: Recording of expenses D: None Test Selected: National Saving Officer Nts	Amjad Hussain
Q: The assets which have some market value is called ? A: Quick Assets B: Liquidity Assets C: Real Assets D: None Test Selected: National Saving Officer Nts	Amjad Hussain
Q: Net loss occurs when ? A: Expenses are greater than revenue B: Revenue are greater than expenses C: Expenses are greater than income D: None Test Selected: National Saving Officer Nts	Amjad Hussain
Q: Which of the following is not the component of Financial Statement ? A: Income Statement B: Balance Sheet C: Retained Earning D: Petty Cash Statement Test Selected: National Saving Officer Nts	Amjad Hussain
Q: Trial balance is prepared to check accuracy of ? A: Balance sheet balances B: Income statement balance C: Ledger account balance D: None Test Selected: National Saving Officer Nts	Amjad Hussain
Q: Assets having physical existence is called ? A: Fixed Assets B: Tangible Assets C: Intangible Assets D: None Test Selected: National Saving Officer Nts	Amjad Hussain
Q: Double entry means ? A: Entry at two ends B: Entry for two aspects of the transaction C: Balance at two ends D: None Test Selected: National Saving Officer Nts	Amjad Hussain
Q: Obligation of the business is known as ? A: Capital B: Current Ratio C: Liabilities D: Assets Test Selected: National Saving Officer Nts	Amjad Hussain
Q: The difference between current assets and current liabilities is known as ? A: Working Capital B: Current Ratio C: Market Ratio D: None Test Selected: National Saving Officer Nts	Amjad Hussain
Q: What is the right equation of balance sheet ? A: Total assets = Liabilities + OE B: Total assets - Liabilities = OE C: Total assets = Liabilities + OE D: Total assets + Liabilities = OE Test Selected: National Saving Officer Nts	Amjad Hussain
Q: The maintenance of accounts in a systematic way is called ? A: Book Keeping B: Double entry system C: Accounting D: None Test Selected: National Saving Officer Nts	Amjad Hussain
Q: Modern system of book keeping is called ? A: Single entry system B: Double entry system C: Amrican system D: None Test Selected: National Saving Officer Nts	Amjad Hussain
Q: A reserve is a charge against ? A: Profit and loss account B: Trading account C: Cash flow statement D: Profit and less appropriation account Test Selected: fpsc senior auditor test	Syed Imtiaz
Q: Which of the following is not a current liability ? A: Prepaid rent B: Bank overdraft C: Creditors D: Tax payable Test Selected: fpsc senior auditor test	Syed Imtiaz
Q: The term fixed asset does not include ? A: Machinery B: Debtors C: Fixtures D: Land Test Selected: fpsc senior auditor test	Syed Imtiaz
Q: The term current asset does not include ? A: Stock-in-trade B: Debtors C: Cash D: Building Test Selected: fpsc senior auditor test	Syed Imtiaz
Q: Bank account is a / an ? A: Actual account B: Personal account C: Nominal account D: Discount account Test Selected: fpsc senior auditor test	Syed Imtiaz
Q: The comparison of net profit with the sales of the same year is ? A: Horizontal Comparison B: Two-dimensional comparison C: Vertical compaison D: Three-dimentional comparison Test Selected: fpsc senior auditor test	Syed Imtiaz
Q: Selling and administrative expenses are called ? A: Normal cost B: Product cost C: Labour cost D: Material cost Test Selected: nts	Mustafa kamal
Q: Which method of Depreciation is used by tax authorities ? Answer: Straight line method Test Selected: fpsc senior auditor test	Ali Zain
Q: Depreciation is calculated on ? Answer: Fixed assets Test Selected: fpsc senior auditor test	Ali Zain
Q: What is meant by deffered taxation ? Answer: fixed liability Test Selected: fpsc senior auditor test	Ali Zain
Q: Accounting equation is ? Answer: assets-liability=equity Test Selected: fpsc senior auditor test	Ali Zain
Q: Balance sheet is prepared at ? Answer: End of year Test Selected: fpsc senior auditor test	Ali Zain
Q: Depreciation does not arise from ? Answer: remarket expectation Test Selected: fpsc senior auditor test	Sabir Ali
Q: The excess of current assets over current liabilities is called ? Answer: Working Capital Test Selected: fpsc senior auditor test	Kinza
Q: Goods return to supplier are known as ? Answer: purchase return Test Selected: fpsc senior auditor test	Kinza
Q: The amount invested by the proprietor to start a business is called ? Answer: Capital Test Selected: fpsc senior auditor test	Kinza
Q: Obligation of the business are known as ? Answer: Liabilities Test Selected: fpsc senior auditor test	Kinza
Q: Discount received is a ? Answer: Revenue Test Selected: fpsc senior auditor test	Kinza
Q: The process to whom goods are sold on credit is called ? Answer: Debtor Test Selected: fpsc senior auditor test	Kinza
Q: Goods return by the customer are termed as ? Answer: Sales return Test Selected: fpsc senior auditor test	Kinza
Q: A systematic way to maintain the books of accounts is called ? Answer: Book Keeping Test Selected: fpsc senior auditor test	Kinza

accounting mcqs

MCQS by Categories

About accounting mcqs