Accounting MCQs with Answers

Ledger is called :

1. Book of original entry
2. Book of final entry
3. Book of compound entry
4. None

Money in the account of account holder is called :

1. Deposits
2. Assets
3. Income
4. none

Deposits are received by which Bank ?

1. State Bank
2. Commercial Bank
3. All
4. None

Profit and loss account is prepared on :

1. Specific time period of time
2. Specific time period for capital
3. income
4. none

Which of the following product costs is both a prime cost and conversion cost?

1. Direct labor
2. Manufacturing overhead
3. Indirect material
4. All of the above

Which of the following is a control account?

1. Capital
2. Prepaid rent
3. Accounts receivable
4. Salary payable

Which of the following are closed at the end of an accounting period?

1. Nominal accounts
2. Personal accounts
3. Real accounts
4. None of them

Which of the following accounts will be debited if the business's owner withdraws cash from business for personal use?

1. Drawings
2. Cash
3. Business
4. Stock

Which is the most important characteristic that all assets of a business have?

1. Long life of assets
2. Value of assets
3. Intangible nature of assets
4. None of the above`

Identify the asset from the following

1. Cash and cash equivalent
2. Creditors
3. Notes payable
4. Bank loan