MCQOPTIONS
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MCQOPTIONS
This section includes 2081 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 1951. |
If a transaction is completely omitted from the books of accounts, will it effect the agreement of Trial Balance? |
| A. | Yes |
| B. | No |
| C. | Transactions can |
| D. | zero |
| Answer» C. Transactions can | |
| 1952. |
The real accounts are accounts of Assets, Liabilities and |
| A. | Expenses |
| B. | Revenues |
| C. | Capital |
| D. | Drawing |
| Answer» D. Drawing | |
| 1953. |
Trial Balance is prepared to check accuracy of |
| A. | Ledger account balances |
| B. | Balance sheet balances |
| C. | Income statement balances |
| D. | Cash flow statement balances |
| Answer» B. Balance sheet balances | |
| 1954. |
Which of the following is the closing balance of a ledger account? |
| A. | Balance c/d |
| B. | Balance b/d |
| C. | Balance e/d |
| D. | Balance f/c |
| Answer» B. Balance b/d | |
| 1955. |
Which of the following are closed at the end of an accounting period? |
| A. | Nominal accounts |
| B. | Personal accounts |
| C. | Real accounts |
| D. | None of them |
| Answer» B. Personal accounts | |
| 1956. |
Office equipment's account is classified as |
| A. | Nominal accounts |
| B. | Real account |
| C. | Cash account |
| D. | Capital account |
| Answer» C. Cash account | |
| 1957. |
Which of the following is the normal balance of a rent expense account? |
| A. | Credit balance |
| B. | Cash balance |
| C. | Overdraft |
| D. | Debit balance |
| Answer» E. | |
| 1958. |
Which of the following statements is incorrect regarding capital account? |
| A. | Debit increases the capital account balance |
| B. | Credit increases the capital account balance |
| C. | Fresh capital increases the capital account balance |
| D. | Net income increases the capital account balance |
| Answer» B. Credit increases the capital account balance | |
| 1959. |
The normal balance of liability account is |
| A. | Credit balance |
| B. | Debit balance |
| C. | Cash balance |
| D. | Neither debit nor credit balance |
| Answer» B. Debit balance | |
| 1960. |
The normal balance of asset account is |
| A. | Credit balance |
| B. | Debit balance |
| C. | Cash balance |
| D. | Neither debit nor credit balance |
| Answer» C. Cash balance | |
| 1961. |
Which of the following is known as the base for preparing trial balance? |
| A. | Journal |
| B. | Cash account |
| C. | Ledger account |
| D. | Balance Sheet |
| Answer» D. Balance Sheet | |
| 1962. |
_____ will be credited if goods are given as charity |
| A. | Cash |
| B. | Charity |
| C. | Purchases |
| D. | Sales |
| Answer» D. Sales | |
| 1963. |
An 'account' records the ______ in the balance of an item |
| A. | Increase |
| B. | Decrease |
| C. | Increase or decrease |
| D. | Appreciation |
| Answer» D. Appreciation | |
| 1964. |
Transferring entries from journal to ;edger account is commonly known as |
| A. | Recording |
| B. | Transferring |
| C. | Posting |
| D. | Entry making |
| Answer» D. Entry making | |
| 1965. |
Credit note is the basis for recording a transaction in which of the following journals? |
| A. | Purchase Journal |
| B. | Sales return journal |
| C. | General journal |
| D. | Cash receipt journal |
| Answer» C. General journal | |
| 1966. |
Debit note is the basis for recording a transaction in which of the following journals? |
| A. | General journal |
| B. | Cash journal |
| C. | Purchase journal |
| D. | Purchase return journal |
| Answer» E. | |
| 1967. |
A brief explanation recorded below every entry in General Journal is commonly known as |
| A. | Narration |
| B. | Explanation |
| C. | Summary |
| D. | Other Information |
| Answer» B. Explanation | |
| 1968. |
Cash purchases is recorded in which of the following specialized journals? |
| A. | Purchase Journal |
| B. | Sales Journal |
| C. | Purchase return journal |
| D. | Cash payments journal |
| Answer» E. | |
| 1969. |
Cash received from debtor is recorded in which of the following specialized journals? |
| A. | Purchase Journal |
| B. | Sales Journal |
| C. | Cash receipts journal |
| D. | Cash payments journal |
| Answer» D. Cash payments journal | |
| 1970. |
Sales and purchase journal doesn't record |
| A. | Credit sales |
| B. | Credit purchases |
| C. | Credit sales and purchases |
| D. | Cash sales and purchases |
| Answer» E. | |
| 1971. |
Which of the following specialized journal records "goods returned by the business"? |
| A. | Purchase journal |
| B. | Sales journal |
| C. | Purchase return journal |
| D. | Sales return journal |
| Answer» D. Sales return journal | |
| 1972. |
Transactions that a business does not record in any specialized journal are recorded in which of the following books? |
| A. | Cash payment journal |
| B. | Cash receipt journal |
| C. | Purchases return journal |
| D. | General journal |
| Answer» E. | |
| 1973. |
Which of the following specialized journal records "goods returned by customers"? |
| A. | Purchase journal |
| B. | Sales journal |
| C. | Purchase return journal |
| D. | Sales return journal |
| Answer» E. | |
| 1974. |
Which of the following accounts will be credited if a company purchases building for cash? |
| A. | Capital account |
| B. | Fixed assets account |
| C. | Building account |
| D. | Cash account |
| Answer» E. | |
| 1975. |
Discount for quick repayment of debt is normally referred to as |
| A. | Trade discount |
| B. | Prompt payment discount |
| C. | Cash discount |
| D. | Bulk discount |
| Answer» D. Bulk discount | |
| 1976. |
In which of the following order, data is entered into the Journal? |
| A. | Alphabetical order |
| B. | Numeric order |
| C. | Bullets order |
| D. | Chronological order |
| Answer» E. | |
| 1977. |
Journals are also referred to as |
| A. | Book of entries |
| B. | Book of original entries |
| C. | T account |
| D. | Book of economic events |
| Answer» C. T account | |
| 1978. |
Which of the following accounts will be debited if the business's owner withdraws cash from business for personal use? |
| A. | Drawings |
| B. | Cash |
| C. | Business |
| D. | Stock |
| Answer» B. Cash | |
| 1979. |
Which of the following will be debited if a business purchases goods on credit? |
| A. | Cash |
| B. | Debtor |
| C. | Creditor |
| D. | Purchases |
| Answer» E. | |
| 1980. |
Discount allowed is |
| A. | Expense of business |
| B. | Income of business |
| C. | Loss of business |
| D. | Abnormal loss of business |
| Answer» B. Income of business | |
| 1981. |
The Journal entry in which two or more account is debited or credited is referred to as |
| A. | Journal entry |
| B. | Multi entry |
| C. | Additional entry |
| D. | Compound entry |
| Answer» E. | |
| 1982. |
The other name of Journal is |
| A. | Ledger |
| B. | T account |
| C. | Day Book |
| D. | Cash Book |
| Answer» D. Cash Book | |
| 1983. |
Discount allowed is a kind of deduction from |
| A. | Account Payable |
| B. | Account Receivable |
| C. | Cash account |
| D. | Discount account |
| Answer» C. Cash account | |
| 1984. |
Every business transaction affects at least ____ accounts |
| A. | One |
| B. | Two |
| C. | Three |
| D. | Infinite |
| Answer» C. Three | |
| 1985. |
General Journal is a book of _____ entries |
| A. | First |
| B. | Original |
| C. | Secondary |
| D. | Generic |
| Answer» C. Secondary | |
| 1986. |
The process of recording in Journal is done |
| A. | Two times in a year |
| B. | Once in a year |
| C. | Frequently during the accounting period |
| D. | At the end of an accounting period |
| Answer» D. At the end of an accounting period | |
| 1987. |
Current Assets - Current Liabilities = ? |
| A. | Capital + Liabilities = assets |
| B. | Absorbed capital |
| C. | Net assets |
| D. | Working capital |
| Answer» E. | |
| 1988. |
Payment of expenses will ______ the assets |
| A. | Increase |
| B. | Reduce |
| C. | Apportion |
| D. | Overstate |
| Answer» C. Apportion | |
| 1989. |
Fresh capital introduction will increase |
| A. | Assets and Liabilities |
| B. | Assets and Equity |
| C. | Liabilities and equity and bank balance |
| D. | Capital and Liabilities |
| Answer» C. Liabilities and equity and bank balance | |
| 1990. |
Net income equal to Revenues minus |
| A. | Gains |
| B. | Depreciation |
| C. | Expenses |
| D. | Capital expenditure |
| Answer» D. Capital expenditure | |
| 1991. |
Capital of a business decreases if there is an increase in |
| A. | Drawings |
| B. | Income |
| C. | Gains |
| D. | Fresh capital |
| Answer» B. Income | |
| 1992. |
Capital increases if ______ increases |
| A. | Expenses are greater than income |
| B. | Drawings |
| C. | Interest on capital |
| D. | Revenue |
| Answer» E. | |
| 1993. |
Double entry implies that |
| A. | Recording entries in Journal |
| B. | Recording entries in Ledger account |
| C. | Recording two aspects of every transaction |
| D. | Recording every transaction in books |
| Answer» D. Recording every transaction in books | |
| 1994. |
Identify the nominal account |
| A. | Machinery account |
| B. | Building account |
| C. | Creditors account |
| D. | Rent expenses account |
| Answer» E. | |
| 1995. |
Net loss occurs when |
| A. | Expenses are greater than income |
| B. | Expenses are less than income |
| C. | Expenses = Income |
| D. | Liabilities are greater than income |
| Answer» B. Expenses are less than income | |
| 1996. |
______ is the withdrawal of cash and goods by the owner of the business for his/her personal use |
| A. | Depreciation |
| B. | Drawings |
| C. | Outflow of cash |
| D. | Appreciation |
| Answer» C. Outflow of cash | |
| 1997. |
Which of the following is a liability ? |
| A. | Cash |
| B. | Equipment |
| C. | Debtors |
| D. | Creditors |
| Answer» E. | |
| 1998. |
What is equity? |
| A. | Cash from the business |
| B. | Liability of a business |
| C. | Owner's claim on total assets |
| D. | Owner's claim on total liabilities |
| Answer» D. Owner's claim on total liabilities | |
| 1999. |
Which of the following is a liability? |
| A. | Cash |
| B. | Equipment |
| C. | Debtors |
| D. | Creditors |
| Answer» E. | |
| 2000. |
Which is the most important characteristic that all assets of a business have? |
| A. | Long life of assets |
| B. | Value of assets |
| C. | Intangible nature of assets |
| D. | Future economic benefits |
| Answer» E. | |