Accounting Questions MCQs

Total Questions : 437

Page 1 of 22 pages
Question 1. Accounting provides information on
  1.    Cost and income for managers
  2.    Company's tax liability for a particular year
  3.    Financial conditions of an institutions
  4.    All of the above
Answer: Option D
Question 2. The long term assets that have no physical existence but are rights that have value is known as
  1.    Current assets
  2.    Fixed assets
  3.    Intangible assets
  4.    Investments
Answer: Option C
Question 3. The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
  1.    Current assets
  2.    Fixed assets
  3.    Intangible assets
  4.    Investments
Answer: Option A
Question 4. The debts which are to be repaid within a short period (year or less) are known as
  1.    Current liabilities
  2.    Fixed liabilities
  3.    Contingent liabilities
  4.    All of the above
Answer: Option A
Question 5. Patents, Copyrights and Trademarks are
  1.    Current assets
  2.    Fixed assets
  3.    Intangible assets
  4.    Investments
Answer: Option C
Question 6. The sales income (Credit and Cash) of a business during a given period is called
  1.    Transactions
  2.    Sales Returns
  3.    Turnover
  4.    Purchase Returns
Answer: Option C
Question 7. Any written evidence in support of a business transaction is called
  1.    Journal
  2.    Ledger
  3.    Ledger posting
  4.    Voucher
Answer: Option D
Question 8. In Journal, the business transaction is recorded
  1.    Same day
  2.    Next day
  3.    Once in a week
  4.    Once in a month
Answer: Option A
Question 9. Real account records
  1.    Dealings with creditors or debtors
  2.    Dealings in commodities
  3.    Gains and losses
  4.    All of the above
Answer: Option B
Question 10. The account that records expenses, gains and losses is
  1.    Personal account
  2.    Real account
  3.    Nominal account
  4.    None of the above
Answer: Option C
Question 11. The following is (are) the type(s) of Journal
  1.    Purchase Journal
  2.    Sales Journal
  3.    Cash Journal
  4.    All of the above
Answer: Option D
Question 12. The process of entering all transactions from the Journal to Ledger is called
  1.    Posting
  2.    Entry
  3.    Accounting
  4.    None of the above
Answer: Option A
Question 13. The following is a statement showing the financial status of the comapany at any given time
  1.    Trading account
  2.    Profit & Loss statement
  3.    Balance Sheet
  4.    Cash Book
Answer: Option C
Question 14. The following is a statement of revenues and expenses for a specific period of time
  1.    Trading account
  2.    Trial Balance
  3.    Profit & Loss statements
  4.    Balance Sheet
Answer: Option C
Question 15. Balance sheet is a statement of
  1.    Assets
  2.    Liabilities
  3.    Capital
  4.    All of the above
Answer: Option D
Question 16. Balance sheets are prepared
  1.    Daily
  2.    Weekly
  3.    Monthly
  4.    Annually
Answer: Option D
Question 17. The ratios that refer to the ability of the firm to meet the short term obligations out of its short term resources
  1.    Liquidity ratio
  2.    Leverage ratio
  3.    Activity ratio
  4.    Profitability ratio
Answer: Option A
Question 18. The measure of how efficiently the assets resources are employed by the firm is called
  1.    Liquidity ratio
  2.    Leverage ratio
  3.    Activity ratio
  4.    Profitability ratio
Answer: Option C
Question 19. The following is (are) the current liability (ies)
  1.    Bills payable
  2.    Outstanding expenses
  3.    Bank Overdraft
  4.    All of the above
Answer: Option D
Question 20. Current ratio =
  1.    Quick assets/Current liabilities
  2.    Current assets/Current liabilities
  3.    Debt/Equity
  4.    Current assets/Equity
Answer: Option B

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