MCQOPTIONS
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MCQOPTIONS
This section includes 743 Mcqs, each offering curated multiple-choice questions to sharpen your Teaching knowledge and support exam preparation. Choose a topic below to get started.
| 301. |
Which of following is the accounting equation? |
| A. | Capital = Assets + Liabilities |
| B. | Capital = Liabilities - Assets |
| C. | Assets = Liabilities - Capital |
| D. | Liabilities = Assets Capital |
| Answer» E. | |
| 302. |
Which accounting concept is also known as periodicity assumption? |
| A. | Money measurement concept |
| B. | Going concern concept |
| C. | Accounting period concept |
| D. | Accounting entity concept |
| Answer» D. Accounting entity concept | |
| 303. |
The job of an accountant is ...........in nature. |
| A. | Analytical |
| B. | clerical |
| C. | Routine |
| D. | None of these |
| Answer» B. clerical | |
| 304. |
Accounting standards board was set up in India in the year |
| A. | 1964 |
| B. | 1975 |
| C. | 1977 |
| D. | 1980 |
| Answer» D. 1980 | |
| 305. |
Revenue is considered as being earned when |
| A. | Cash is received |
| B. | sale is effected |
| C. | Production is done |
| D. | None of the above |
| Answer» C. Production is done | |
| 306. |
Book keeping is a system of recording these transaction of business |
| A. | Economic |
| B. | business |
| C. | Monetary |
| D. | financial |
| Answer» D. financial | |
| 307. |
Dual aspect concept of accounting works on assumption that |
| A. | Every business are based on two entities |
| B. | every business activity and transaction have two fold effects |
| C. | every Business activity have two partners, one is business itself and other is shareholder |
| D. | None of the above |
| Answer» C. every Business activity have two partners, one is business itself and other is shareholder | |
| 308. |
The policy of playing safe can be attributed with which accounting convention? |
| A. | Convention of Consistency |
| B. | Convention of Conservation |
| C. | Convention of Materiality |
| D. | Convention of Full Disclosure |
| Answer» C. Convention of Materiality | |
| 309. |
Accrual basis of accounting is not suitable for whom? |
| A. | Business |
| B. | NGOs |
| C. | Government |
| D. | None of the above |
| Answer» C. Government | |
| 310. |
Which one of the following is not a, stage of double entry system? |
| A. | Books of Original Entry |
| B. | Posting |
| C. | Trial Balance |
| D. | Suspense Account |
| Answer» E. | |
| 311. |
The policy of "Anticipate no profit and provide for all possible losses" arises due to convention of |
| A. | Disclose |
| B. | materiality |
| C. | Conservatism |
| D. | consistency |
| Answer» D. consistency | |
| 312. |
First of all, double entry system was introduced in |
| A. | America |
| B. | Japan |
| C. | India |
| D. | Italy |
| Answer» E. | |
| 313. |
Arrange the following is chronological order about the accounting transactions and events are recorded in the books. I. Ledger II. Trial Balance III. Journal IV. Subsidiary Books Codes |
| A. | III. IV, I, II |
| B. | III, I, IV, II |
| C. | IV, III, II, I |
| D. | III, I, II, IV |
| Answer» B. III, I, IV, II | |
| 314. |
Which of the following is the nominal account? |
| A. | Goodwill |
| B. | Trademark |
| C. | Copyright |
| D. | Rent |
| Answer» E. | |
| 315. |
M/S Hari and Sons accounts is related to |
| A. | the capital accounts |
| B. | the personal accounts |
| C. | the firms accounts |
| D. | the real accounts |
| Answer» C. the firms accounts | |
| 316. |
Personal accounts are related to |
| A. | The assets and liabilities |
| B. | The expenses, losses and incomes |
| C. | The customers and suppliers |
| D. | The employees and managers |
| Answer» B. The expenses, losses and incomes | |
| 317. |
The basic principle i.e. "all expenses are debited and all incomes are credited" applies to |
| A. | Personal accounts |
| B. | Nominal accounts |
| C. | Real accounts |
| D. | None of the above |
| Answer» C. Real accounts | |
| 318. |
Sale on account is recorded in |
| A. | Cash book |
| B. | Sale book |
| C. | Journal |
| D. | None of the above |
| Answer» C. Journal | |
| 319. |
Returned goods to Bajaj and Co. is recorded in |
| A. | Purchase return book |
| B. | Journal |
| C. | Sales return book |
| D. | None of the above |
| Answer» B. Journal | |
| 320. |
Cash sales are recorded in |
| A. | Sales book |
| B. | cash book |
| C. | Journal book |
| D. | None of these |
| Answer» C. Journal book | |
| 321. |
Returns inward from Rahim is entered in |
| A. | Sales return book |
| B. | Purchase return book |
| C. | Journal |
| D. | None of the above |
| Answer» B. Purchase return book | |
| 322. |
A customer's cheque returned dishonoured is recorded in |
| A. | Purchase returns |
| B. | sales return book |
| C. | Case book |
| D. | journal |
| Answer» D. journal | |
| 323. |
Which item is shown on the debit side of a trial balance? |
| A. | Purchase returns |
| B. | Rent outstanding |
| C. | Prepaid expenses |
| D. | None of the above |
| Answer» D. None of the above | |
| 324. |
All loses and expenses are |
| A. | debited |
| B. | credited |
| C. | Both and |
| D. | None of the above |
| Answer» B. credited | |
| 325. |
Purchase of office furniture on credit is recorded in |
| A. | purchase book |
| B. | general book |
| C. | cash book |
| D. | None of the above |
| Answer» C. cash book | |
| 326. |
Bills receivable book is a part of |
| A. | Ledger |
| B. | journal |
| C. | Balance sheet |
| D. | None of the above |
| Answer» E. | |
| 327. |
General Journal is also known as |
| A. | Journal proper |
| B. | general accounts |
| C. | General ledger |
| D. | journal book |
| Answer» B. general accounts | |
| 328. |
Petty cash book is maintained by separate person called |
| A. | manager |
| B. | finance manager |
| C. | petty cashier |
| D. | None of the above |
| Answer» D. None of the above | |
| 329. |
Cash book records only one aspect of transaction i.e. |
| A. | credit |
| B. | cash |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» C. Both (a) and (b) | |
| 330. |
Both journal and ledger are the important books used under |
| A. | double entry system |
| B. | single entry system |
| C. | accrual system |
| D. | None of the above |
| Answer» B. single entry system | |
| 331. |
Bad debts account is related to |
| A. | Personal account |
| B. | real account |
| C. | Nominal account |
| D. | suspense account |
| Answer» D. suspense account | |
| 332. |
A set of accounts is called |
| A. | rules |
| B. | account books |
| C. | procedures |
| D. | ledger |
| Answer» E. | |
| 333. |
'Acquiring trade mark' is an example of |
| A. | expenses |
| B. | assets |
| C. | losses |
| D. | None of these |
| Answer» C. losses | |
| 334. |
'Theft by burglars' is an example of |
| A. | expenses |
| B. | assets |
| C. | losses |
| D. | None of these |
| Answer» D. None of these | |
| 335. |
If you pay salary to your clerk, the accounts involved are |
| A. | salary account |
| B. | cash account |
| C. | Both and |
| D. | None of these |
| Answer» D. None of these | |
| 336. |
If you purchase goods from Ram on credit then the two accounts involved are |
| A. | purchases account and goods account |
| B. | Rams account and sales account |
| C. | purchases account and Rams account |
| D. | None of the above |
| Answer» D. None of the above | |
| 337. |
The right side of an account is called |
| A. | credit side |
| B. | debit side |
| C. | income side |
| D. | None of these |
| Answer» B. debit side | |
| 338. |
The left side of an account is called |
| A. | debit side |
| B. | income side |
| C. | credit side |
| D. | None of these |
| Answer» B. income side | |
| 339. |
"Goods, the payment of which is due after 2 months, were sold to M/S Bell and Co. for ` 1000". Name the book of original entry would the stated transaction be entered. |
| A. | cash book |
| B. | purchases book |
| C. | sales book |
| D. | journal proper |
| Answer» D. journal proper | |
| 340. |
Which of the following accounts is increased by debit entries? |
| A. | Machinery account |
| B. | Purchase return account |
| C. | Discount earned account |
| D. | None of the above |
| Answer» B. Purchase return account | |
| 341. |
"Discount allowed for a prompt payment received by a concern". Name the book of original entry would the stated transaction be entered. |
| A. | journal proper |
| B. | cash book |
| C. | purchases book |
| D. | sales book |
| Answer» C. purchases book | |
| 342. |
If a trial balance does not agree, then accountant opens |
| A. | Drawing account |
| B. | suspense account |
| C. | Capital account |
| D. | nominal account |
| Answer» C. Capital account | |
| 343. |
The 'impress system' is used in relation to |
| A. | purchases book |
| B. | cash book |
| C. | sales book |
| D. | petty cash book |
| Answer» E. | |
| 344. |
Which of the following books is not a book of original entry? |
| A. | The journal |
| B. | The ledger |
| C. | The cash book |
| D. | The bills receivable book |
| Answer» C. The cash book | |
| 345. |
Sales book is used to record |
| A. | all sales of goods |
| B. | all credit sales |
| C. | all credit sales of assets other than goods |
| D. | all credit sales of goods |
| Answer» E. | |
| 346. |
Cash book is used to record |
| A. | all receipts only |
| B. | all payments only |
| C. | all cash and credit sales |
| D. | all receipts and payments of cash |
| Answer» E. | |
| 347. |
Which of the following account has a credit balance? |
| A. | Carriage inward |
| B. | Carriage outward |
| C. | Return inward |
| D. | Return outward |
| Answer» E. | |
| 348. |
Normally...........are balanced. |
| A. | Personal accounts and nominal accounts |
| B. | Real accounts and nominal accounts |
| C. | Personal accounts and real accounts |
| D. | None of the above |
| Answer» D. None of the above | |
| 349. |
The process of recording a transaction in the journal is called |
| A. | journalising |
| B. | costing |
| C. | posting |
| D. | tallying |
| Answer» B. costing | |
| 350. |
Bad debts recovered account is a |
| A. | personal account |
| B. | nominal account |
| C. | real account |
| D. | None of the above |
| Answer» C. real account | |