When a person buys or sells goods or acts some business activities, it is said that a business transaction has occurred. We can define Business Transaction properly as, “An exchange of goods or services between persons for price is called a transaction.” After the completion of transaction, it is necessary to record this transaction in the books of accounts. All the transactions are properly recorded after analyzing. A brief record of Transaction is called an “Account”
Nature of Accounts– MCQs with Answers
![Nature of Accounts – MCQs with Answers Nature of Accounts – MCQs with Answers](https://i0.wp.com/riazacademy.com/wp-content/uploads/2018/09/Nature-of-Accounts-2.jpg?resize=400%2C200)
1. The basic rule of bookkeeping, debit what comes in and credit what goes out is applicable to:
A) Personal accounts (B) Natural personal accounts
C) Nominal accounts (D) Real accounts
2. The claim of the outsiders against the assets of the business is called:
A) Loans (B) Sundry Creditors
C) Liabilities (D) Capital
3. Nominal accounts are related to:
A) Assets (B) Expense, losses and income
C) Liabilities (D) Firm or business
4. The basic rule of bookkeeping debit the receiver and credit the giver:
A) Personal accounts (B) Real accounts
C) Nominal accounts (D) Valuation accounts
5. The rule of debit all expenses and losses and credit all gains and income is applicable to:
A) Real accounts (B) Nominal accounts
C) Personal accounts (D) Artificial Personal accounts
6. Personal accounts are related to:
A) Assets and liabilities (B) Expense, losses and income
C) Customers, creditors etc. (D) None of them
7. Real accounts are related to:
A) Assets (B) Expense, losses and income
C) Customers, creditors etc. (D) Liabilities
8. When an account represents certain person or persons then it is called:
A) Natural Personal accounts (B) Artificial Personal accounts
C) Real accounts (D) Representative Personal accounts
9. Account relating to the persons or firms is called:
A) Personal accounts (B) Real accounts
C) Nominal accounts (D) All of the above
10. Accounts which keep the record of properties owned by a trader, are called:
A) Personal accounts (B) Real accounts
C) Nominal accounts (D) None of them
11. A debit represents an increase in:
A) An asset (B) An equity
C) Liability (D) Owner’s equity
12. The accounts, which have their existence even after the close of the year, are known as:
A) Nominal accounts (B) Real accounts
C) Personal accounts (D) Tangible accounts
13. If an account shows a debit balance, it represents:
A) Income (B) Expense
C) Liability (D) Capital
14. A credit represents by:
A) A decrease in an equity (B) A decrease in a liability
C) A decrease in an asset (D) A decrease in owner’s equity
15. Discount received is a:
A) Asset (B) Liability
C) Revenue (D) Expenses
16. The entry system in which cash account and personal accounts are maintained is called:
A) Double Entry System (B) Single Entry System
C) Accounting System (D) None of these
17. The concept of recording dual aspect concept of business transactions is called:
A) Double Entry System Concept (B) Dual Recording Concept
C) Dual Aspect Concept (D) None of these
18. Which normally has a credit balance:
A) Building Account (B) Purchase account
C) Real account (D) Sales account
19. How many categories of accounts are:
A) 2 (B) 3
C) 4 (D) 5
20. Real and nominal accounts are maintained under:
A) Single Entry System (B) Double Entry System
C) Triple Entry System (D) Multiple Entry System
21. Rent, Salaries and Wages paid are:
A) Real accounts (B) Personal accounts
C) Nominal accounts (D) None of these
22. Yasir’s account is an example of:
A) Real accounts (B) Personal accounts
C) Nominal accounts (D) None of these
23. Stationery account is an example of:
A) Consumable Asset (B) Loss
C) Expense (D) None of these
24. Cash and personal accounts are maintained in:
A) Double Entry System (B) Single Entry System
C) Multiple Entry System (D) None of these
25. Real and nominal accounts are maintained under:
A) Single Entry System (B) Double Entry System
C) Triple Entry System (D) Multiple Entry System
Note: To Find Answers kindly click below to check your knowledge. Below you will find 20 MCQs from Chapter : Nature of Accounts – Part-I (1 to 20 MCQs’)
Answers
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