Accounting Job Test Questions Questions Part 2

Following are the important questions that are usually asked in a job test for accounting and finance posts jobs. Hopefully, this will be very helpful for you in the preparation for your job tests and interviews.

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Revenue - Expenses =?
			
		

		

					

		

			
			

			

			Net Loss
		
			

			Net Income
		
			

			Depreciation
		
			

			None of the above
		
	
		

		
		

			

				Correct!
				Wrong!
			
			
Revenue minus Expenses is the net income of the company.
		
	

	



	
	

		

			

				
What is a compound entry?
			
		

		

					

		

			
			

			

			Entry that is used to record a business transaction in the accounting records of a business.
		
			

			Accounting entry in which just one account is debited and one is credited.
		
			

			An entry involving more than two accounts.
		
			

			An accounting entry in which there is more than one debit, more than one credit, or more than one of both debits and credits.
		
	
		

		
		

			

				Correct!
				Wrong!
			
			
A compound journal entry is an accounting entry in which there is more than one debit, more than one credit, or more than one of both debits and credits.
		
	

	



	
	

		

			

				
An Asset possessed by the business should be shown in which part of balance sheet?
			
		

		

					

		

			
			

			

			Liabilities
		
			

			Assets
		
			

			Fixed Assets
		
			

			Revenues
		
	
		

		
		

			

				Correct!
				Wrong!
			
			
An Asset possessed by the business should be shown in Asset part of balance sheet.
		
	

	



	
	

		

			

				
Day book is also known as?
			
		

		

					

		

			
			

			

			Book Keeping
		
			

			Journal
		
			

			Voucher
		
			

			Ledger
		
	
		

		
		

			

				Correct!
				Wrong!
			
			
Day Book is the other name of Journal.
		
	

	


			
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What increases the Assets & Equity?
			
		

		

					

		

			
			

			

			Revenues
		
			

			Debts paid off
		
			

			Fresh Capital
		
			

			None of the above
		
	
		

		
		

			

				Correct!
				Wrong!
			
			
The Assets & Equity of a company increases when fresh capital is introduced.
		
	

	



	
	

		

			

				
Identifying an economic transaction is which phase of accounting cycle?
			
		

		

					

		

			
			

			

			Second
		
			

			Third
		
			

			Last
		
			

			First
		
	
		

		
		

			

				Correct!
				Wrong!
			
			
Identifying an economic transaction is the first phase of an accounting cycle.
		
	

	



	
	

		

			

				
What is a Real Account?
			
		

		

					

		

			
			

			

			The account that represents a country's imports and exports of goods and services.
		
			

			The account in which accounting transactions are stored for one fiscal year.
		
			

			An account that retains and rolls forward its ending balance at the end of the year.
		
			

			An interest-bearing deposit account held at a bank or other financial institution.
		
	
		

		
		

			

				Correct!
				Wrong!
			
			
A real account is an account that retains and rolls forward its ending balance at the end of the year. These amounts then become the beginning balances in the next period.
		
	

	



	
	

		

			

				
Cash Account is credited when?
			
		

		

					

		

			
			

			

			Building bought in cash
		
			

			Asset sold for cash
		
			

			Debts paid off
		
			

			None of the above
		
	
		

		
		

			

				Correct!
				Wrong!
			
			
Cash Account is credited when a building is purchases by the organization for cash.
		
	

	


			
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What causes the decrease in Assets?
			
		

		

					

		

			
			

			

			Cash Purchases
		
			

			Retained Earnings
		
			

			Payment of Expenses
		
			

			Liabilities
		
	
		

		
		

			

				Correct!
				Wrong!
			
			
When an expense is recorded at the same time it is paid for with cash, the cash (asset) account declines, while the amount of the expense reduces the retained earnings account.
		
	

	



	
	

		

			

				
When does the capital of a company increases?
			
		

		

					

		

			
			

			

			Drawings Decrease
		
			

			Revenue Increases
		
			

			Interest on capital increases
		
			

			Liabilities Decrease
		
	
		

		
		

			

				Correct!
				Wrong!
			
			
The capital of a company increases when its revenue increases.
		
	

	

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Top Accounting Job Test Mcqs with Answers with Answers