Basic Accounting MCQs with answers pdf | Financial Accounting MCQ pdf

Basic Accounting MCQs with answers pdf | Financial Accounting MCQ pdf for the preparation of academic and competitive exams.

Basic Accounting MCQs

Basic Accounting MCQs with answers

1) ___is the art of recording, classifying, and summarizing in a significant manner, in terms of money transactions and events that are, at least in part, of a financial character, and interpreting the results thereof.
a) Journal Entry
b) Ledger
c) Accounting
d) None
Answer: (c)

2) Any form of accounting that enables a business to be conducted more efficiently can be regarded as ___ accounting.
a) Financial
b) Management
c) Cost
d) None
Answer: (b)

3) Inflation accounting is also called ___
a) Revaluation
b) Replacement
c) None
d) All
Answer: (b)

4) A process of accounting that recognizes the impact of transactions on the financial statements in the time periods when revenues and expenses occur instead of when cash is received or disbursed is called ___ basis.
a) Accrual
b) Cash
c) None
d) a & b
Answer: (a)

5) A process of accounting where revenue and expense recognition occur when cash is received and disbursed is called ___.
a) Cash
b) Accrual
c) None
d) a & b
Answer: (a)

6) ___ they are the present obligations arising from past events. It also arises when an asset is created or acquired.
a) Asset
b) Liabilities
c) Equity
d) All
Answer: (b)

7) ___ is an increase in economic benefits during the accounting period in the form of inflows or enhancements of assets or a decrease in liabilities, thereby increasing equity and net worth.
a) Income
b) Equity
c) Expenses
d) None
Answer: (a)

8) ___ is a residual interest in the assets after deducting liabilities
a) Income
b) Equity
c) Expenses
d) None
Answer: (b)

9) ___ concept implies that each transaction and event must be expressible in monetary terms.
a) Money measurement
b) Business Entity
c) Going Concerned
d) None
Answer: (a)

10) ___ implies that a business unit is separate and distinct from the person who owns or controls it
a) Money measurement
b) Business Entity
c) Going Concerned
d) None
Answer: (b)

11) ___ concept says that to recognize revenue, it has to be realized.
a) Accrual concept
b) Matching concept
c) Realization concept
d) None
Answer: (c)

12) The conventions, concepts, rules, and procedures that together make up accepted accounting practice at any given time are called ___
a) AICPA
b) GAAP
c) GAPA
d) None of the above
Answer: (b)

13) ___ is the after-tax cash flow generated by a business minus the cost of the capital it has deployed to generate that cash flow.
a) EVA
b) GAAP
c) AICPA
d) None of the above
Answer: (a)

14) Prepaid Insurance A/cis ___ A/c
a) Real
b) Personal
c) Nominal
d) None
Answer: (c)

15) Outstanding wages A/c is ___ A/c
a) Personal
b) Real
c) Nominal
d) None
Answer: (a)

16) Bad Debts A/c is ___ A/c
a) Real
b) Personal
c) Nominal
d) None
Answer: (c)

17) The ___ accounting system provides a system of checks and balances
a) Single Entry
b) Financial Entry
c) Double Entry
d) Triple Entry
Answer: (c)

18) It means that cash is received by the business from the proprietor. It results in the immediate receipt of cash
a) Antony commenced business with Rs 10,000
b) Bought goods for cash rs 2,000
c) Charged commission to Chander rs 100
d) Sold goods for cashrs 1000
Answer: (a)

19) Debt may be of ___ types
a) 3
b) 2
c) 5
d) None
Answer: (a)

20) Creditor may be ___ types:
a) 3
b) 2
c) 4
d) 5
Answer: (c)

21) ___ is a brief explanation to a journal entry, given below the journal entry, within brackets
a) Narration
b) Ledger
c) Credit
d) Debit
Answer: (a)

22) ___ is written in a ledger A/c at the time of its closing to indicate that the balance in that A/c has been carried down to the next period.
a)c/f
b) c/d
c) b/d
d) b/f
Answer: (b)

23) A cashbook, which is used to record both cash and bank transactions, is referred to as a ___ column cash book.
a) 1
b) 2
c) 3
d) 4
Answer: (b)

24) ___ provides internet technology to navigate the vast resources available in the market.
a) WWW
b) Internet
c) Intranet
d) None
Answer: (a)

25) ___ are devices that allow direct data entry into the computer without doing any manual data entry.
a) Standard Programmes
b) Scanner
c) Flow Charts
d) None
Answer: (b)

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3 Comments

  1. Amit Kumar says:

    Prepaid insurance is a Nominal account hoga …. Please clear the doubt

    Q no 14

    1. Daniyal Sajid says:

      Prepaid insurance is a personal account and is shown on the assets side of a balance sheet.

  2. Daniyal Sajid says:

    Prepaid insurance is a personal account and is shown on the assets side of a balance sheet.

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