Accounting MCQs with Answers

Debit balance = Credit balance in a trial balance indicates that:

1. No error in recording transactions
2. No error in posting entries to ledger accounts
3. Account balances are correct
4. Mathematically Capital

_____is the residual interest of owners in assets over liability?

1. Expenses
2. Income
3. Equity
4. None of these

Which of the following is a Book of secondary entries?

1. Posting
2. Ledger
3. Account
4. Transaction
5. None of these

The Bank Reconciliation Statement is?

1. Not a part of book of accounts
2. A part of books of accounts
3. A part and parcel of books of accounts
4. Both B & C

Historical cost of inventories may be determined by using?

1. FIFO
2. LIFO
3. Variable Costing Method
4. Both A & B

Intangible Assets_____?

1. Have physical existence
2. Have no physical existence
3. Which can be seen
4. None of these

Loans obtained against hypothecation of an asset is called?

1. Unsecured Loan
2. Capital
3. Secured Loan
4. All of the above

A ______ increases in liability, while ___________ decreases in liability.

1. Debit, Debit
2. Credit, Debit
3. Credit, Credit
4. Debit, Credit

Which of the following are the functions of treasuries?

1. Taxation and insurance
2. Managing working capital
3. Accounting and Auditing
4. None of these

Project invisibility can lead to sub-optimal results when ______ is used for capital retaining

1. NPV
2. ARR
3. IRP
4. PI