Accounting MCQ's
The accounting process involves in recording?
A) Quantifiable economic event - Correct Answer
B) Non quantifiable economic event
C) All of them
D) None of them
Economic Event in Accounting is referred as?
A) Cash
B) Bank statement
C) Transaction - Correct Answer
D) Exchange of money
Identify the correct sequence of accounting process?
A) Communicating→Recording→Identifying
B) Recording→Communicating→Identifying
C) Identifying→communicating→recording
D) Identifying→recording→communicating - Correct Answer
Which part of Accounting is mainly know as bookkeeping?
A) Analysing
B) Preparing financial statements
C) Recording financial information - Correct Answer
D) Auditing the books of accounts
Double entry book-keeping was fathered by?
a) F.W.Taylor
b) Henry Fayol
c) Lucas Pacioli - Correct Answer
d) None of these
Depreciation in spirit is similar to?
a) Depletion
b) Amortization - Correct Answer
c) Depression
d) All of these
Balance Sheet is always prepared?
a) for the year ended
b) As on a specified date - Correct Answer
c) Yearly
d) None of these
Quick Ratio can be computed as under?
a) Quick Assets/Quick Liabilities
b) Quick Liabilities Current Assets
c) Current Assets/ Current Liabilities - Correct Answer
d) All of these
Books of original entry are called?
(a) Ledger
(b) Work sheets
(c) Journal - Correct Answer
(d) None of these
Prepaid Expenses are?
(a) Liability
(b) Equities
(c) Assets - Correct Answer
(d) None of these
Unpaid and unrecorded expenses are called?
(a) Prepaid expenses
(b) Accrued expenses - Correct Answer
(c) Additional expenses
(d) None of these
Amount received from business?
(a) Capital
(b) Drawings - Correct Answer
(c) Assets
(d) None of these
Under the diminishing balance method, depreciation amount is?
(a) Payment
(b) Receipt
(c) Expenditure - Correct Answer
(d) None of these
Users of accounting information include?
(a) The tax authorities
(b) Investors
(c) Creditors
(d) All of these - Correct Answer
The business forms in which owner is liable is?
(a) Partnership only
(b) Proprietorship
(c) Corporation only
(d) Partnership and proprietorship - Correct Answer
The investment of personal assets by the owner?
(a) Increases total assets and increases owner’s equity - Correct Answer
(b) Increases total assets only
(c) No effect on assets but increases equity
(d) Increase assets and liabilities
Economic resource of business for future benefits?
(a) Liabilities
(b) Owner’s equity
(c) Withdrawals
(d) Assets - Correct Answer
Investment of land by owner into business?
(a) Decrease withdrawals
(b) Increase liabilities
(c) Increase owner’s equity - Correct Answer
(d) Decrease assets
A cash purchase of supplies would?
(a) Decrease owner’s equity
(b) Increase liabilities
(c) Have no effect on total assets - Correct Answer
(d) None of these
Real accounts are related to?
(a) Assets - Correct Answer
(b) Expenses and incomes
(c) Customers and Creditors etc.
(d) None of these
Normally which of the account show debit balance?
(a) Cash - Correct Answer
(b) Creditors
(c) Accounts payable
(d) Salaries Expenses
(e) None of these
Quick assets include which of the following?
(a) Cash
(b) Accounts Receivable
(c) Inventories
(d) Only (a) and (b) - Correct Answer
Net income plus operating expenses is equal to?
(a) Net sales
(b) Cost of goods available for sale
(c) Cost of goods sold
(d) Gross profit - Correct Answer
Balance sheet is always prepared?
(a) For the year ended
(b) As on a specific date- Correct Answer
(c) Every Month
(c) None of these
Recording the information's in the book of original entry is called?
A) Bookkeeping - Correct Answer
B) summarizing
C) Grouping
D) Processing
Identify the external user of financial statements?
A) Manager of the business
B) CEO of the business
C) Creditor of the business - Correct Answer
D) Controller of the business
Identify the Internal user of financial statements?
A) Creditor of the business
B) Government agency
C) Shareholder of the business
D) Manager of the business - Correct Answer
First phase of accounting cycle?
A) Identifying an economic event or transaction - Correct Answer
B) Preparing journals
C) Posting entries to ledger accounts
D) Making decisions about business
Asset posses which of the following?
A) Future economic benefits for the business - Correct Answer
B) Possess value
C) Expenses for the business
D) Merits and Demerits for the business
Liabilities are which of the following?
A) Resources
B) Obligations - Correct Answer
C) Future benefits
D) Expenses
The gross inflow of economic benefits?
A) Assets
B) Liabilities
C) Income - Correct Answer
D) Expenses
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