Accounting MCQs

Option A: Discount

Option B: Voucher

Option C: Allowance

Option D: Price

Correct Answer: Voucher ✔

Option A: Discount

Option B: Cash discount

Option C: Allowance

Option D: Trading discount

Correct Answer: Allowance ✔

Option A: Capital

Option B: Loan

Option C: Drawing

Option D: None of these

Correct Answer: Capital ✔

Option A: Paid price

Option B: Invoice price

Option C: Book price

Option D: Discount

Correct Answer: Discount ✔

Option A: Return received

Option B: Return Payed

Option C: Return inward

Option D: Return outward

Correct Answer: Return inward ✔

Option A: Purchases

Option B: Return inward

Option C: Sales

Option D: Return outwards

Correct Answer: Sales ✔

Option A: Working Capital

Option B: Circulating capital

Option C: Fixed capital

Option D: Trading capital

Correct Answer: Working Capital ✔

Option A: Merchandise return

Option B: Purchase return

Option C: Return inwards

Option D: Sales return

Correct Answer: Purchase return ✔

Option A: Liabilities

Option B: Revenues

Option C: Expenses

Option D: Assets

Correct Answer: Liabilities ✔

Option A: Capital

Option B: Business

Option C: Drawings

Option D: All of them

Correct Answer: Capital ✔

Option A: Asset

Option B: Expense

Option C: Liability

Option D: Revenue

Correct Answer: Revenue ✔

Option A: Entry in two sets of books

Option B: Entry at two ends

Option C: Entry at two dates

Option D: Entry for two aspects of the transaction

Correct Answer: Entry for two aspects of the transaction ✔

Option A: Buyer

Option B: Seller

Option C: Debtor

Option D: Creditor

Correct Answer: Debtor ✔

Option A: Double entry system

Option B: American system

Option C: Single entry system

Option D: Italic system

Correct Answer: Double entry system ✔

Option A: Purchase return

Option B: Customer return

Option C: Sales return

Option D: Inventory return

Correct Answer: Sales return ✔

Option A: Accounting

Option B: Reading

Option C: Book Keeping

Option D: Auditing

Correct Answer: Book Keeping ✔

Option A: Accounting

Option B: Accountancy

Option C: Auditing

Option D: Book Keeping

Correct Answer: Accounting ✔

Option A: Accountancy

Option B: Economics

Option C: Book Keeping

Option D: Auditing

Correct Answer: Book Keeping ✔

Option A: Balance Sheet

Option B: Cash Flow Statement

Option C: Income Statement

Option D: None of the above

Correct Answer: Income Statement ✔

Option A: Lots in , Few out

Option B: Link input, Format Output

Option C: Last input, First Output

Option D: Last in, First Out

Correct Answer: Last in, First Out ✔

Option A: Expense

Option B: Liability

Option C: financial assets

Option D: All of them

Correct Answer: financial assets ✔

Option A: Purchases

Option B: Prompt payment

Option C: Sales

Option D: Sales return

Correct Answer: Prompt payment ✔

Option A: profit and loss account

Option B: Manufacturing account

Option C: Income and Expenditure Account

Option D: Cost of good sold

Correct Answer: Income and Expenditure Account ✔

Option A: Sinking Fund Method

Option B: Annuity Method

Option C: Sum of Year Digits Method

Option D: None of these

Correct Answer: Sinking Fund Method ✔

Option A: works on cost.

Option B: selling overhead.

Option C: distribution overhead.

Option D: administration overhead

Correct Answer: administration overhead ✔

Option A: estimation of profit.

Option B: estimation of cost.

Option C: estimation of selling price.

Option D: estimation of units.

Correct Answer: estimation of selling price. ✔

Option A: prime cost.

Option B: factory cost.

Option C: distribution cost.

Option D: production cost

Correct Answer: distribution cost. ✔

Option A: all indirect costs.

Option B: all direct costs.

Option C: indirect and direct costs.

Option D: all specific costs

Correct Answer: all indirect costs. ✔

Option A: Each Department

Option B: Each unit of output

Option C: Each Month

Option D: Each Executive

Correct Answer: Each unit of output ✔

Option A: Inventory

Option B: Accounts Payable

Option C: Accounts Receivable

Option D: Expenses

Correct Answer: Accounts Receivable ✔

Option A: Amortization

Option B: Loan Payment

Option C: Liability

Option D: Securitization

Correct Answer: Amortization ✔

Option A: 1,600

Option B: 1,500

Option C: 1,000

Option D: 1,800

Correct Answer: 1,500 ✔

Option A: 18,387

Option B: 18,560

Option C: 18,750

Option D: 19,000

Correct Answer: 18,387 ✔

Option A: Direct cost

Option B: Cost Sheet

Option C: Budget

Option D: Marginal Costing.

Correct Answer: Budget ✔

Option A: 792

Option B: 820

Option C: 840

Option D: 864

Correct Answer: 864 ✔

Option A: 8,000 units

Option B: 11,000 units

Option C: 10,000 units

Option D: 9,000 units

Correct Answer: 10,000 units ✔

Option A: 65,025

Option B: 94,287

Option C: 95,020

Option D: 1,52,624

Correct Answer: Opening stock of raw material 11,570 ✔

Option A: 37.50

Option B: 38.25

Option C: 24.00

Option D: 35.00

Correct Answer: 24.00 ✔

Option A: 0.65

Option B: 0.35

Option C: 1.50

Option D: 5.29

Correct Answer: 0.65 ✔

Option A: 5,80,000

Option B: 5,50,000

Option C: 5,00,000

Option D: 5,75,000

Correct Answer: 5,80,000 ✔

Option A: Uncontrollable cost

Option B: Sunk cost

Option C: Avoidable cost

Option D: Opportunity cost

Correct Answer: Sunk cost ✔

Option A: Crane hours

Option B: Crane value

Option C: Truck Mileage

Option D: Truck value

Correct Answer: Crane value ✔

Option A: 111%

Option B: 120%

Option C: 95%

Option D: 117%

Correct Answer: 111% ✔

Option A: Direct cost

Option B: Variable cost

Option C: Commercial cost

Option D: Conversion cost

Correct Answer: Commercial cost ✔

Option A: Relevant costs

Option B: Differential costs

Option C: Target costs

Option D: Sunk costs

Correct Answer: Differential costs ✔

Option A: Variable cost

Option B: Unit cost

Option C: Total cost

Option D: Fixed cost

Correct Answer: Unit cost ✔

Option A: No change occurs to inventories for either use absorption costing or variable costing methods

Option B: The use of absorption costing produces a higher net income than the use of variable costing

Option C: The use of absorption costing produces a lower net income than the use of variable costing

Option D: The use of absorption costing causes inventory value to increase more than they would though the use of variable costing

Correct Answer: No change occurs to inventories for either use absorption costing or variable costing methods ✔

Option A: I

Option B: T

Option C: H

Option D: None

Correct Answer: T ✔

Option A: Petty cash

Option B: Cash book

Option C: Cash receipt

Option D: Discount

Correct Answer: Petty cash ✔

Option A: Cash book

Option B: Two columns cash book

Option C: Three columns cash book

Option D: Petty cash book

Correct Answer: Three columns cash book ✔

Option A: Receipts

Option B: Payments

Option C: Incomes

Option D: Expenditures

Correct Answer: Receipts ✔

Option A: Lump sum

Option B: Prompt

Option C: Actual

Option D: None of them

Correct Answer: Prompt ✔

Option A: Receipts

Option B: Payments

Option C: Income

Option D: Expense

Correct Answer: Payments ✔

Option A: Receipts

Option B: Payments

Option C: Incomes

Option D: Expenditures

Correct Answer: Payments ✔

Option A: Simple cash book

Option B: Two column cash book

Option C: Three column cash book

Option D: Petty cash book

Correct Answer: Petty cash book ✔

Option A: Bank

Option B: Prepaid expenses

Option C: Accounts receivable

Option D: Creditor

Correct Answer: Prepaid expenses ✔

Option A: Receipts

Option B: Payments

Option C: Incomes

Option D: Expenditures

Correct Answer: Payments ✔

Option A: Bank

Option B: Payments

Option C: Discount

Option D: Cash

Correct Answer: Cash ✔

Option A: Simple cash book

Option B: Two column cash book

Option C: Three column cash book

Option D: Petty cash book

Correct Answer: Two column cash book ✔

Option A: Payee

Option B: Payer

Option C: Bank

Option D: Seller

Correct Answer: Seller ✔

Option A: Cash

Option B: Bank balance

Option C: Accounts receivable

Option D: Cash reserve

Correct Answer: Accounts receivable ✔

Option A: Every day

Option B: Every half year

Option C: Every year

Option D: At the end of every accounting period

Correct Answer: At the end of every accounting period ✔

Option A: Bank balance

Option B: Cash at bank

Option C: Bank overdraft

Option D: Bank underdraft

Correct Answer: Bank overdraft ✔

Option A: Liability

Option B: Asset

Option C: Expenses

Option D: Income

Correct Answer: Asset ✔

Option A: Receipts

Option B: Payments

Option C: Incomes

Option D: Expenditures

Correct Answer: Payments ✔

Option A: Bank

Option B: Accountant of business

Option C: Manager of a company

Option D: Bank’s cashier

Correct Answer: Accountant of business ✔

Option A: Cash payments

Option B: Cash receipts

Option C: Cash payments and cash receipts

Option D: Neither cash payments nor cash receipts

Correct Answer: Cash payments ✔

Option A: Cash entry

Option B: Contra entry

Option C: Payment entry

Option D: Compound entry

Correct Answer: Contra entry ✔

Option A: $5000 will be credited

Option B: $5000 will be debited

Option C: $10,000 will be credited

Option D: $10,000 will be debited

Correct Answer: $5000 will be credited ✔

Option A: $1000 will be added to cash book balance

Option B: $2000 will be deducted from cash book balance

Option C: $3000 will be added to cash book balance

Option D: $3000 will be subtracted from cash book balance

Correct Answer: $3000 will be subtracted from cash book balance ✔

Option A: $2000

Option B: Zero

Option C: $3000

Option D: $2500

Correct Answer: $2000 ✔

Option A: Credit balance

Option B: Debit balance

Option C: Bank overdraft

Option D: Adjusted balance

Correct Answer: Credit balance ✔

Option A: Unpresented checks

Option B: Uncredited checks

Option C: Outstanding checks

Option D: Bounced checks

Correct Answer: Uncredited checks ✔

Option A: Outstanding checks

Option B: Unpresented checks

Option C: Deposit in transit

Option D: Omission of Bank charges

Correct Answer: Outstanding checks ✔

Option A: Adjusted

Option B: Unadjusted

Option C: Understated

Option D: Overstated

Correct Answer: Adjusted ✔

Option A: $500 will be debited

Option B: $500 will be credited

Option C: Non-adjustable

Option D: $1000 will be subtracted

Correct Answer: $500 will be credited ✔

Option A: Uncollected checks

Option B: Uncredited checks

Option C: Outstanding checks

Option D: Bounced checks

Correct Answer: Outstanding checks ✔

Option A: Unpresented checks

Option B: Uncredited checks

Option C: Outstanding checks

Option D: Bounced checks

Correct Answer: Uncredited checks ✔

Option A: Credited in the cash book

Option B: Debited in the cash book

Option C: Entered in the bank statement

Option D: Entered in the petty cash balance

Correct Answer: Credited in the cash book ✔

Option A: $2000 will be debited in cash book

Option B: $2000 will be credited in cash book

Option C: $4000 will be debited in cash book

Option D: $4000 will be credited in the cash book

Correct Answer: $2000 will be credited in cash book ✔

Option A: Uncollected checks

Option B: Uncredited checks

Option C: Outstanding checks

Option D: Bounced checks

Correct Answer: Outstanding checks ✔

Option A: Subtracted from bank balance

Option B: Added to bank balance

Option C: Added to Cash book balance

Option D: Subtracted from cash book balance

Correct Answer: Added to bank balance ✔

Option A: Cash receipt journal

Option B: Cash payment journal

Option C: Cash book

Option D: Financial statements

Correct Answer: Cash book ✔

Option A: Credit balance of cash book

Option B: Debit balance of cash book

Option C: Bank overdraft

Option D: Adjusted balance of cash book

Correct Answer: Debit balance of cash book ✔

Option A: Bank charges will be debited in cash book

Option B: Bank charges will be added to cash book balance

Option C: Bank charges will be credited in cash book

Option D: Bank charges need no adjustment in cash book

Correct Answer: Bank charges will be credited in cash book ✔

Option A: Accountant of the business

Option B: Manager of the business

Option C: Controller of the bank

Option D: Accountant of the bank

Correct Answer: Accountant of the business ✔

Option A: Bank can’t verify your identity

Option B: There are not sufficient funds in your account

Option C: Check has been forged

Option D: Check can’t be cashed being illegal

Correct Answer: There are not sufficient funds in your account ✔

Option A: Debit

Option B: Credit

Option C: Expenses

Option D: Liability

Correct Answer: Credit ✔

Option A: Genuine trade reasons

Option B: For mutual financial accommodation

Option C: To help augment money supply

Option D: All the three

Correct Answer: For mutual financial accommodation ✔

Option A: 4-4-2013

Option B: 3-4-2013

Option C: 1-4-2013

Option D: 31-3-2013

Correct Answer: 4-4-2013 ✔

Option A: Acceptance

Option B: Unconditional promise to pay

Option C: Properly stamped

Option D: Payment to be made legal currency

Correct Answer: Acceptance ✔

Option A: Triplicate

Option B: Duplicate

Option C: Single

Option D: Quadruplicate

Correct Answer: Triplicate ✔

Option A: Unconditional

Option B: Certainty of amount

Option C: In writing

Option D: Amount to be paid in foreign currency

Correct Answer: Amount to be paid in foreign currency ✔

Option A: 1981

Option B: 1881

Option C: 1871

Option D: 2001

Correct Answer: 1881 ✔

Option A: 4

Option B: 2

Option C: 3

Option D: 5

Correct Answer: 3 ✔

Option A: It must be in writing

Option B: It contains an unconditional promise to pay

Option C: It is payable to the bearer

Option D: It must be signed by the maker

Correct Answer: It is payable to the bearer ✔

Option A: When a discounted bill is honoured by the drawee on the due date

Option B: When a bill is sent to the bank for collection

Option C: When a bill is renewed at the request of the drawee

Option D: When a debtor accepts a bill drawn by the drawer

Correct Answer: When a discounted bill is honoured by the drawee on the due date ✔

Option A: Discounting of the bill with the bank

Option B: Payment of the bill on due date

Option C: Remitting or receiving the amount

Option D: Sending the bill to bank for collection

Correct Answer: Remitting or receiving the amount ✔

Option A: The drawer of the bill

Option B: The person responsible for dishonour

Option C: The holder of the bill

Option D: The endorser of the bill

Correct Answer: The person responsible for dishonour ✔

Option A: Only (i) above

Option B: Both (ii) and (iv) above

Option C: Both (i) and (iii) above

Option D: Both (i) and (iv) above

Correct Answer: i. Debit Bills Receivable Account ✔