2081 + Mcqs in Accounting McqOptions

1.	Identify the correct sequence of accounting process
A.	Communicating -> Recording -> Identifying
B.	Recording -> Communicating -> Identifying
C.	Identifying -> Communicating -> Recording
D.	Identifying -> Recording -> Communicating
Answer» E.

Discussion

2.	In accounting, an economic event is referred to as
A.	Cash
B.	Bank statement
C.	Transaction
D.	Exchange of money
Answer» D. Exchange of money

Discussion

3.	The accounting process involves recording
A.	Quantifiable economic event
B.	Non Quantifiable economic event
C.	All of them
D.	None of them
Answer» B. Non Quantifiable economic event

Discussion

4.	A Master Budget consists of
A.	Sales budget
B.	Production budget
C.	Material budget
D.	All of the above
Answer» E.

Discussion

5.	Budgeting is difficult to apply in the following cases
A.	Products subjected to rapid changes
B.	Job order manufacturing
C.	Uncertain market condition
D.	All of the above
Answer» E.

Discussion

6.	Sales expenditure budget is prepared by estimating the expense(s) of
A.	Advertisement
B.	Market analysis
C.	Salesmans salary
D.	All of the above
Answer» E.

Discussion

7.	A low Return on Investment Ratio (ROI) indicates
A.	Improper utilization of resources
B.	Over investment in assets
C.	Both A and B
D.	None of the above
Answer» D. None of the above

Discussion

8.	Return on Investment Ratio (ROI) =
A.	(Gross profit / Net sales) x 100
B.	(Gross profit x Sales / Fixed assets) x 100
C.	(Net profit / Sales) x 100
D.	(Net profit / Total assets) x 100
Answer» E.

Discussion

9.	A higher inventory ratio indicates
A.	Better inventory management
B.	Quicker turnover
C.	Both A and B
D.	None of the above
Answer» D. None of the above

Discussion

10.	Lower the Debt Equity ratio
A.	Lower the protection to creditors
B.	Higher the protection to creditors
C.	It does not affect the creditors
D.	None of the above
Answer» C. It does not affect the creditors

Discussion

11.	Liquid or Quick assets =
A.	Current assets - (Stock + Work in progress)
B.	Current assets + Stock + Work in progress
C.	(Current assets + Stock) + Work in progress
D.	(Current assets + Work in progress) - Stock
Answer» B. Current assets + Stock + Work in progress

Discussion

12.	Current ratio =
A.	Quick assets/Current liabilities
B.	Current assets/Current liabilities
C.	Debt/Equity
D.	Current assets/Equity
Answer» C. Debt/Equity

Discussion

13.	The following is (are) the current liability (ies)
A.	Bills payable
B.	Outstanding expenses
C.	Bank Overdraft
D.	All of the above
Answer» E.

Discussion

14.	The measure of how efficiently the assets resources are employed by the firm is called
A.	Liquidity ratio
B.	Leverage ratio
C.	Activity ratio
D.	Profitability ratio
Answer» D. Profitability ratio

Discussion

15.	The ratios that refer to the ability of the firm to meet the short term obligations out of its short term resources
A.	Liquidity ratio
B.	Leverage ratio
C.	Activity ratio
D.	Profitability ratio
Answer» B. Leverage ratio

Discussion

16.	Balance sheets are prepared
A.	Daily
B.	Weekly
C.	Monthly
D.	Annually
Answer» E.

Discussion

17.	Balance sheet is a statement of
A.	Assets
B.	Liabilities
C.	Capital
D.	All of the above
Answer» E.

Discussion

18.	The following is a statement of revenues and expenses for a specific period of time
A.	Trading account
B.	Trial Balance
C.	Profit & Loss statements
D.	Balance Sheet
Answer» D. Balance Sheet

Discussion

19.	The following is a statement showing the financial status of the comapany at any given time
A.	Trading account
B.	Profit & Loss statement
C.	Balance Sheet
D.	Cash Book
Answer» D. Cash Book

Discussion

20.	The process of entering all transactions from the Journal to Ledger is called
A.	Posting
B.	Entry
C.	Accounting
D.	None of the above
Answer» B. Entry

Discussion

21.	The following is (are) the type(s) of Journal
A.	Purchase Journal
B.	Sales Journal
C.	Cash Journal
D.	All of the above
Answer» E.

Discussion

22.	In Journal, the business transaction is recorded
A.	Same day
B.	Next day
C.	Once in a week
D.	Once in a month
Answer» B. Next day

Discussion

23.	Real account records
A.	Dealings with creditors or debtors
B.	Dealings in commodities
C.	Gains and losses
D.	All of the above
Answer» C. Gains and losses

Discussion

24.	The account that records expenses, gains and losses is
A.	Personal account
B.	Real account
C.	Nominal account
D.	None of the above
Answer» D. None of the above

Discussion

25.	Any return evidence in support of a business transaction is called
A.	Journal
B.	Ledger
C.	Ledger posting
D.	Voucher
Answer» E.

Discussion

26.	The sales income (Credit and Cash) of a business during a given period is called
A.	Transactions
B.	Sales Returns
C.	Turnover
D.	Purchase Returns
Answer» D. Purchase Returns

Discussion

27.	The debts which are to be repaid within a short period (year or less) are known as
A.	Current liabilities
B.	Fixed liabilities
C.	Contingent liabilities
D.	All of the above
Answer» B. Fixed liabilities

Discussion

28.	Patents, Copyrights and Trademarks are
A.	Current assets
B.	Fixed assets
C.	Intangible assets
D.	Investments
Answer» D. Investments

Discussion

29.	The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A.	Current assets
B.	Fixed assets
C.	Intangible assets
D.	Investments
Answer» B. Fixed assets

Discussion

30.	The long term assets that have no physical existence but are rights that have value is known as
A.	Current assets
B.	Fixed assets
C.	Intangible assets
D.	Investments
Answer» D. Investments

Discussion

31.	Accounting provides information on
A.	Cost and income for managers
B.	Companys tax liability for a particular year
C.	Financial conditions of an institutions
D.	All of the above
Answer» E.

Discussion

Explore topic-wise MCQs in Testing Subject.

Identify&nbsp;the&nbsp;correct&nbsp;sequence&nbsp;of&nbsp;accounting&nbsp;process

In&nbsp;accounting,&nbsp;an&nbsp;economic&nbsp;event&nbsp;is&nbsp;referred&nbsp;to&nbsp;as

The&nbsp;accounting&nbsp;process&nbsp;involves&nbsp;recording

A&nbsp;Master&nbsp;Budget&nbsp;consists&nbsp;of

Budgeting&nbsp;is&nbsp;difficult&nbsp;to&nbsp;apply&nbsp;in&nbsp;the&nbsp;following&nbsp;cases

Sales&nbsp;expenditure&nbsp;budget&nbsp;is&nbsp;prepared&nbsp;by&nbsp;estimating&nbsp;the&nbsp;expense(s)&nbsp;of

A&nbsp;low&nbsp;Return&nbsp;on&nbsp;Investment&nbsp;Ratio&nbsp;(ROI)&nbsp;indicates

Return&nbsp;on&nbsp;Investment&nbsp;Ratio&nbsp;(ROI)&nbsp;=

A&nbsp;higher&nbsp;inventory&nbsp;ratio&nbsp;indicates

Lower&nbsp;the&nbsp;Debt&nbsp;Equity&nbsp;ratio

Liquid&nbsp;or&nbsp;Quick&nbsp;assets&nbsp;=

Current&nbsp;ratio&nbsp;=

The&nbsp;following&nbsp;is&nbsp;(are)&nbsp;the&nbsp;current&nbsp;liability&nbsp;(ies)

The&nbsp;measure&nbsp;of&nbsp;how&nbsp;efficiently&nbsp;the&nbsp;assets&nbsp;resources&nbsp;are&nbsp;employed&nbsp;by&nbsp;the&nbsp;firm&nbsp;is&nbsp;called

The&nbsp;ratios&nbsp;that&nbsp;refer&nbsp;to&nbsp;the&nbsp;ability&nbsp;of&nbsp;the&nbsp;firm&nbsp;to&nbsp;meet&nbsp;the&nbsp;short&nbsp;term&nbsp;obligations&nbsp;out&nbsp;of&nbsp;its&nbsp;short&nbsp;term&nbsp;resources

Balance&nbsp;sheets&nbsp;are&nbsp;prepared

Balance&nbsp;sheet&nbsp;is&nbsp;a&nbsp;statement&nbsp;of

The&nbsp;following&nbsp;is&nbsp;a&nbsp;statement&nbsp;of&nbsp;revenues&nbsp;and&nbsp;expenses&nbsp;for&nbsp;a&nbsp;specific&nbsp;period&nbsp;of&nbsp;time &nbsp;

The&nbsp;following&nbsp;is&nbsp;a&nbsp;statement&nbsp;showing&nbsp;the&nbsp;financial&nbsp;status&nbsp;of&nbsp;the&nbsp;comapany&nbsp;at&nbsp;any&nbsp;given&nbsp;time

The&nbsp;process&nbsp;of&nbsp;entering&nbsp;all&nbsp;transactions&nbsp;from&nbsp;the&nbsp;Journal&nbsp;to&nbsp;Ledger&nbsp;is&nbsp;called

The&nbsp;following&nbsp;is&nbsp;(are)&nbsp;the&nbsp;type(s)&nbsp;of&nbsp;Journal

In&nbsp;Journal,&nbsp;the&nbsp;business&nbsp;transaction&nbsp;is&nbsp;recorded

Real&nbsp;account&nbsp;records

The&nbsp;account&nbsp;that&nbsp;records&nbsp;expenses,&nbsp;gains&nbsp;and&nbsp;losses&nbsp;is

Any&nbsp;return&nbsp;evidence&nbsp;in&nbsp;support&nbsp;of&nbsp;a&nbsp;business&nbsp;transaction&nbsp;is&nbsp;called

The&nbsp;sales&nbsp;income&nbsp;(Credit&nbsp;and&nbsp;Cash)&nbsp;of&nbsp;a&nbsp;business&nbsp;during&nbsp;a&nbsp;given&nbsp;period&nbsp;is&nbsp;called

The&nbsp;debts&nbsp;which&nbsp;are&nbsp;to&nbsp;be&nbsp;repaid&nbsp;within&nbsp;a&nbsp;short&nbsp;period&nbsp;(year&nbsp;or&nbsp;less)&nbsp;are&nbsp;known&nbsp;as

Patents,&nbsp;Copyrights&nbsp;and&nbsp;Trademarks&nbsp;are

The&nbsp;assets&nbsp;that&nbsp;can&nbsp;be&nbsp;converted&nbsp;into&nbsp;cash&nbsp;within&nbsp;a&nbsp;short&nbsp;period&nbsp;(i.e.&nbsp;1&nbsp;year&nbsp;or&nbsp;less)&nbsp;are&nbsp;known&nbsp;as

&nbsp; The&nbsp;long&nbsp;term&nbsp;assets&nbsp;that&nbsp;have&nbsp;no&nbsp;physical&nbsp;existence&nbsp;but&nbsp;are&nbsp;rights&nbsp;that&nbsp;have&nbsp;value&nbsp;is&nbsp;known&nbsp;as

Accounting&nbsp;provides&nbsp;information&nbsp;on

Identify the correct sequence of accounting process

In accounting, an economic event is referred to as

The accounting process involves recording

A Master Budget consists of

Budgeting is difficult to apply in the following cases

Sales expenditure budget is prepared by estimating the expense(s) of

A low Return on Investment Ratio (ROI) indicates

Return on Investment Ratio (ROI) =

A higher inventory ratio indicates

Lower the Debt Equity ratio

Liquid or Quick assets =

Current ratio =

The following is (are) the current liability (ies)

The measure of how efficiently the assets resources are employed by the firm is called

The ratios that refer to the ability of the firm to meet the short term obligations out of its short term resources

Balance sheets are prepared

Balance sheet is a statement of

The following is a statement of revenues and expenses for a specific period of time

The following is a statement showing the financial status of the comapany at any given time

The process of entering all transactions from the Journal to Ledger is called

The following is (are) the type(s) of Journal

In Journal, the business transaction is recorded

Real account records

The account that records expenses, gains and losses is

Any return evidence in support of a business transaction is called

The sales income (Credit and Cash) of a business during a given period is called

The debts which are to be repaid within a short period (year or less) are known as

Patents, Copyrights and Trademarks are

The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as

The long term assets that have no physical existence but are rights that have value is known as

Accounting provides information on