Accounting MCQs with Answers

Important Accounting MCQs with Answers PDF for accounting test preparation online.

Accounting MCQs with Answers

Building and furniture are called ____?

1. Current asset
2. Fictitious asset
3. Tangible asset
4. Fixed assets

A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of___?

1. Error of omission
2. Error of commission
3. Compensating error
4. Error of principle

Credit note is the basis for recording a transaction in which of the following journals?

1. Purchase Journal
2. Sales return journal
3. General journal
4. Cash receipt journal

___ is the first phase of accounting cycle

1. Identifying an economic event or transaction
2. Preparing Journal
3. Posting entries to Ledger accounts
4. Making decisions about business

Which of the following statements is incorrect regarding capital account?

1. Debit increases the capital account balance
2. Credit increases the capital account balance
3. Fresh capital increases the capital account balance
4. Net income increases the capital account balance

Amount paid to Masood posted to the credit side of his account would affect___?

1. Masood’s account
2. Cash account
3. Cash account and Gagan’s account
4. None of these

Journal proper is meant for recording___?

1. Credit purchase of fixed assets
2. Return of goods
3. All such transactions for which no special journal has been kept by the business
4. None of these

If goods worth 1,750 returned to a supplier is wrongly entered in sales return book as 1,570, then

1. Net Profit will decrease by 3,140
2. Gross Profit will increase by 3,320
3. Gross Profit will decrease by 3,500
4. Gross Profit will decrease by 3,320

Error which affect only one account can be

1. Error of complete omission
2. Error of posting
3. Compensatory errors
4. None of the above

Postage stamps on hand are considered as___?

1. Bank
2. Prepaid expenses
3. Accounts receivable
4. Creditor

Cash received from debtors would be deemed as __ of funds.

1. No flow
2. Sources
3. Uses
4. Gain