MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which of the following account with normal balance is shown at the credit side of a trial balance?%! |
| A. | Cash account |
| B. | Bank account |
| C. | Equipment account |
| D. | Accrued expenses account |
| Answer» E. | |
| 2. |
Cash book records%! |
| A. | Cash payments |
| B. | Cash Receipts |
| C. | Cash payments and cash receipts |
| D. | Neither cash payments nor cash receipts |
| Answer» D. Neither cash payments nor cash receipts | |
| 3. |
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 | |
| 4. |
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. | |
| 5. |
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 | |
| 6. |
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 | |
| 7. |
*$_Which of the following specialized journal records "goods returned by customers"?? |
| A. | Purchase journal |
| B. | Sales journal |
| C. | Purchase return journal |
| D. | Sales return journal |
| Answer» E. | |
| 8. |
*$_The matching concept matches which of the following?? |
| A. | Asset with liabilities |
| B. | Capital with income |
| C. | Revenues with expenses |
| D. | Expenses with capital |
| Answer» D. Expenses with capital | |
| 9. |
*$_Which of the following account will be credited, if business bought goods on credit from Mr. Z?? |
| A. | Purchases account |
| B. | Mr. Z account |
| C. | Cash account |
| D. | Sales account |
| Answer» C. Cash account | |
| 10. |
*$_Which of the following is not considered as Research & Development costs?? |
| A. | Testing in search for product alternatives |
| B. | Legal work on patent application |
| C. | Modification of design of a process |
| D. | Searching for application of new research findings |
| Answer» C. Modification of design of a process | |
| 11. |
*$_Rs.5000 spent on maintenance of computer is? |
| A. | Deferred capital expenditure |
| B. | Capital expenditure |
| C. | Revenue expenditure |
| D. | None of the above |
| Answer» D. None of the above | |
| 12. |
*$_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 | |
| 13. |
*$_What is equity?? |
| A. | Cash from the business |
| B. | Liability of a business |
| C. | Owner's claim on total assets |
| D. | Owner's claim on total liabilities |
| Answer» D. Owner's claim on total liabilities | |
| 14. |
*$________ is the gross inflow of economic benefits? |
| A. | Assets |
| B. | Liabilities |
| C. | Income |
| D. | Expenses |
| Answer» D. Expenses | |
| 15. |
*$_Balance sheet is a statement of? |
| A. | Assets |
| B. | Liabilities |
| C. | Capital |
| D. | All of the above |
| Answer» E. | |
| 16. |
*$_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 | |
| 17. |
*$_A low Return on Investment Ratio (ROI) indicates? |
| A. | Improper utilization of resources |
| B. | Over investment in assets |
| C. | Both A and B |
| D. | None of the above |
| Answer» D. None of the above | |
| 18. |
*$_Current ratio =? |
| A. | Quick assets/Current liabilities |
| B. | Current assets/Current liabilities |
| C. | Debt/Equity |
| D. | Current assets/Equity |
| Answer» C. Debt/Equity | |
| 19. |
*$_Payment of expenses will ______ the assets? |
| A. | Increase |
| B. | Reduce |
| C. | Apportion |
| D. | Overstate |
| Answer» C. Apportion | |
| 20. |
*$_General Journal is a book of _____ entries? |
| A. | First |
| B. | Original |
| C. | Secondary |
| D. | Generic |
| Answer» C. Secondary | |
| 21. |
*$_Identify the nominal account? |
| A. | Machinery account |
| B. | Building account |
| C. | Creditors account |
| D. | Rent expenses account |
| Answer» E. | |
| 22. |
*$_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. | |
| 23. |
*$_Journals are also referred to as? |
| A. | Book of entries |
| B. | Book of original entries |
| C. | T account |
| D. | Book of economic events |
| Answer» C. T account | |
| 24. |
*$____ days of grace are allowed in case of time bills, for calculating date of maturity? |
| A. | 2 |
| B. | 4 |
| C. | 3 |
| D. | 5 |
| Answer» D. 5 | |
| 25. |
*$_If an effect of an error is cancelled by the effect of some other error, it is commonly known as? |
| A. | Error of principle |
| B. | Compensatory errors |
| C. | Error of omission |
| D. | Error of commission |
| Answer» C. Error of omission | |
| 26. |
*$_The cost of a small calculator is treated as an expense and not shown as an asset in a financial statement of a business entity due to? |
| A. | Materiality concept |
| B. | Matching concept |
| C. | Periodicity concept |
| D. | Conservatism concept |
| Answer» B. Matching concept | |
| 27. |
*/*_Which of the following is not regarded as the fundamental concept that is identified by IAS-1?? |
| A. | The going concern concept |
| B. | The separate entity concept |
| C. | The prudence concept |
| D. | Correction concept |
| Answer» E. | |
| 28. |
*/*________ are cheques that are issued by the business but not yet presented to bank for payment? |
| A. | Uncollected cheques |
| B. | Uncredited cheques |
| C. | Outstanding cheques |
| D. | Bounced cheques |
| Answer» D. Bounced cheques | |
| 29. |
*/*_A cash deposit made by business appears on the bank statement as ____ balance? |
| A. | Debit |
| B. | Credit |
| C. | Expenses |
| D. | Liability |
| Answer» C. Expenses | |
| 30. |
*/*_Postdated cheques are considered as? |
| A. | Cash |
| B. | Bank balance |
| C. | Accounts receivable |
| D. | Cash reserve |
| Answer» D. Cash reserve | |
| 31. |
*/*_Drawings by owner of business are generally recorded on which of the following side of a cash book?? |
| A. | Receipts |
| B. | Payments |
| C. | Incomes |
| D. | Expenditures |
| Answer» C. Incomes | |
| 32. |
*/*_When it is certain that a debt won't be recovered. Which of the following is correct?? |
| A. | Provision for bad debt is created |
| B. | Account receivable is credited |
| C. | Bad debts is credited |
| D. | Sales is debited |
| Answer» C. Bad debts is credited | |
| 33. |
*/*_When capital is increased by an amount, it is recorded on the:? |
| A. | Left or credit side of the account |
| B. | Right or debit side of the account |
| C. | Right or credit side of the account |
| D. | Left or debit side of the account |
| Answer» D. Left or debit side of the account | |
| 34. |
*/*_All of the following are the methods of inventory costing except? |
| A. | FIFO |
| B. | LIFO |
| C. | AVCO or average cost |
| D. | Stock take |
| Answer» E. | |
| 35. |
*/*_Which of the following is a commonly used base to create the provision for doubtful debts?? |
| A. | Total purchases |
| B. | Total credit sales |
| C. | Total current assets |
| D. | Total current liabilities |
| Answer» C. Total current assets | |
| 36. |
*/*_Under which depreciation method, the amount of depreciation expenses remains same throughtout the life of the asset?? |
| A. | Straight line method |
| B. | Reducing balance method |
| C. | Number of units produced method |
| D. | Machine hours method |
| Answer» B. Reducing balance method | |
| 37. |
*/*_Which of the following does not appear in Balance sheet?? |
| A. | Building |
| B. | Cash |
| C. | Goodwill |
| D. | Rent expenses |
| Answer» E. | |
| 38. |
*/*_Which of the following financial statements shows the financial position of a business at a specific date?? |
| A. | Balance sheet |
| B. | Income statement |
| C. | Cash flow statement |
| D. | Statement of changes in equity |
| Answer» B. Income statement | |
| 39. |
*/*_An increase in the value of fixed asset is referred to as:? |
| A. | Depreciation |
| B. | Appreciation |
| C. | Market capitalization |
| D. | Reverse depreciation |
| Answer» C. Market capitalization | |
| 40. |
*/*_Net profit is computed in which of the following?? |
| A. | Balance sheet |
| B. | Income statement |
| C. | Cash flow statement |
| D. | Statement of changes in equity |
| Answer» C. Cash flow statement | |
| 41. |
*/*_Information about an item is _______ if its ommission or misstatement might influence the financial decision of the users taken on the basis of that information? |
| A. | Concrete |
| B. | Complete |
| C. | Immaterial |
| D. | Material |
| Answer» E. | |
| 42. |
*/*_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 | |
| 43. |
*/*_Legal expenses incurred on a suit for breach of contract to supply goods is a? |
| A. | Capital expenditure |
| B. | Deferred Revenue expenditure |
| C. | Revenue expenditure |
| D. | Both 'b' and 'c' |
| Answer» D. Both 'b' and 'c' | |
| 44. |
*/*_Preliminary expenses are treated as? |
| A. | Fixed asstes |
| B. | Current assets |
| C. | Intangible assets |
| D. | Miscellaneous expenditure |
| Answer» E. | |
| 45. |
*/*_Promissory note is prepared by? |
| A. | Drawer |
| B. | Endorsee |
| C. | Drawee |
| D. | All of the above |
| Answer» B. Endorsee | |
| 46. |
*/*_Gross profit is equal to? |
| A. | Opening stock + purchases - closing stock |
| B. | Net profit - expenses |
| C. | Sales - Closing stock + purchases |
| D. | Sales - Cost of goods sold |
| Answer» E. | |
| 47. |
*/*_X draws a bill on Y. X endorsed the bill to Z. ____ will be the payee of the bill.? |
| A. | X |
| B. | Y |
| C. | Z |
| D. | None of the above |
| Answer» D. None of the above | |
| 48. |
*/*_Endorsement, discounting and collection of bills of exchange is made by? |
| A. | Debtors |
| B. | Creditors |
| C. | Drawee |
| D. | Drawer |
| Answer» E. | |
| 49. |
*/*_Joint venture account is a? |
| A. | Nominal account |
| B. | Personal account |
| C. | Real account |
| D. | Dummy account |
| Answer» B. Personal account | |
| 50. |
*/*_Normally the following accounts are balanced? |
| A. | Real account and Nominal account |
| B. | Personal account and Real account |
| C. | Only Nominal account |
| D. | All accounts |
| Answer» C. Only Nominal account | |