Accounting is the core subject in the field of business and commerce. You can check your knowledge with the help of following Multiple Choice Questions (MCQs) with Answers.
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1.The Pioneer of Accounting is:
(a) Arthur Field House (b Gitman (c) William Pickles (d) Lucas Pacioli
2. The art of recording, classifying and summarizing is called:
(a) Journalizing (b) Accounting (c) Bookkeeping (d) Record Keeping
3. Accounting records of a business enterprise is required by:
(a) Management of the business (b) Outsiders (c) All of the above (d) None of them
4. To control the cost of production and distribution is the main field of:
(a) Financial Accounting (b) Cost Accounting (c) Bookkeeping (d) Auditing
5. Double Entry means:
(a) Entry for the two aspects of books (b) Entry at two dates
(c) Entry in two aspects of transaction (d) All of the above
6. Bookkeeping provides the:
a) Primary information (b) Secondary information) c) Final information (d) None of them
7. Recording of the business transaction in a systematic way is called:
(a) Accounting (b) Recording (c) Journalizing (d) Bookkeeping
8. Modern system of bookkeeping is:
a) Single entry system b) Double entry system c) Modern system d) British system
9. Double entry system of bookkeeping involves at least:
(a) One accounts (b) Two accounts (c) Three Accounts (d) None of them
10. The supply of goods or services in exchange of money between two parties is known as:
A) Goods transactions (B) Service transactions
C) Business transactions (D) Credit transactions
11. The accounts in which the credit sale of merchandise or services are placed is known as:
A) Notes Receivable (B) Accounts Receivable
C) Amount Receivable (D) Discount Receivable
12. The goods which are purchased for the purpose of resale are called:
A) Purchases (B) Merchandise
C) Goods/Inventory (D) All of the above
13. The main function of Accounting is to:
A) Record economic data (B) Provide informational basis for action
C) Classify and record business transactions (D) All of the above
14. Management accounting provides valuable services to management in performing:
A) All management functions (B) Controlling functions
C) Coordinating management functions (D) None of them
15. The owner of the business is called:
A) Proprietorship (B) Ownership
C) Industrialist (D) Proprietor
16. Promise to pay a certain amount is called:
A) Account Payable (B) Notes Payable
C) Amount Payable (D) Discount Payable
17. Cash invested by the owner is called:
A) Asset (B) Liabilities
C) Capital (D) Loan
Cash or goods taken away by the proprietor is called:
A) Drawings (B) Sales
C) Charity (D) Expense
18. The rights and claims of outsiders/ owner against the asset is called:
A) Owner’s Equity (B) Liabilities
C) Equities (D) None of them
19. The things of value possessed by the trader is called:
A) Merchandise (B) Assets
C) Stock (D) Purchases
Choose Accounting Topics for MCQs with Answers
- Introduction to Accounting
- Accounting Equation
- Nature of Accounts – Rules of Debit and Credit
- Journal
- Ledger and Trial Balance
- Banking Transactions
- Sub-Division of Journal – Cash Book and Petty Cash Book, Receipts & Payment Journal
- Bank Reconciliation Statement – BRS
- Bills of Exchange
- Capital and Revenue Expenditures
- Rectification of Errors
- Final Accounts with Adjustment
- Work Sheet
- Single Entry Book-Keeping System
- Non-Trading Concerns
- Partnership Accounting
- Consignment Accounts
- Joint Venture Accounts
- Company Accounts
- Depreciation
- Provisions and Reserves
- Branch Accounting
- Departmental Accounting
- Contract Accounts
- Hire Purchase and Installments