Accounting MCQs with Answers

Benefits of preparing Bank Reconciliation Statement includes___________?

1. It bring out any errors committed in preparation of Cash book / Bank Pass Book
2. Highlights under delay in clearance of cheques deposited but not credited
3. Help know actual bank balance
4. All the three

Transactions that a BUSINESS doesn’t record in any specialised journal are recorded in which of the following journals or day books?

1. Cash payments journal
2. Cash receipts journal
3. Purchases return journal
4. General journal

Transferring entries from journal to ledger account is commonly known as____________?

1. Recording
2. Transferring
3. Posting
4. Entry making

Net sales = Sales less?

1. Sales returns
2. Sales discounts
3. Sales returns & allowances
4. Sales returns & allowances and sales discounts

The largest expense of most manufacturing firms is?

1. Salaries Expense
2. Amortization Expense
3. Rent Expense
4. Cost of goods sold

Graph which is plotted for projected net present value and capital rates is called

1. net loss profile
2. net gain profile
3. net future value profile
4. net present value profile

A point where profile of net present value crosses horizontal axis at plotted graph indicates project

1. Costs
2. cash flows
3. internal rate of return
4. external rate of return

The maintenance of accounts in a systematic way is called:

1. Accounting
2. Reading
3. Book keeping
4. Auditing

Which of following account with normal balance is shown at the debit side of the trial balance?

1. Rent income account
2. Credits account
3. Cash account
4. Unearned income account

The major government policies that can be used to pursue its macroeconomic goals are:

1. Fiscal policy and debit policy
2. Fiscal policy and monetary policy
3. Fiscal policy and subsidies
4. None