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Introduction to Accounting MCQs with Answers – Test Your Mcqs Skills
1) A written evidence in supporting business dealing is called:
(A) Business document
(B) Business letter
(C) Voucher
(D) Financial statement
Answer: Option C
2) Creditors are also known as:
(A) Notes payable
(B) Accounts Receivable
(C) Notes payable
(D) A/c payable
Answer:Option B
3) Debtors are also known as:
(A) Notes payable
(B) Accounts Receivable
(C) Notes payable
(D) A/c payable
Answer: Option B
4) Business debts are known as:
(A) Expenses
(B) Assets
(C) Income
(D) Liabilities
Answer: Option D
5) Business dealing is known as:
(A) Entry
(B) Transaction
(C) Posting
(D) Purchasing
Answer: Option B
6) The right of owner against the properties of business is known as:
(A) Asset
(B) Liabilities
(C) Capital
(D) Drawings
Answer: Option C
7) The word Accounting is used in the language of:
(A) Economy
(B) Business
(C) Indian people
(D) Latini
Answer: Option B
8) The Assets purchased on account are considered as:
(A) Liabilities
(B) Income
(C) Expenses
(D) Drawings
Answer: Option A
9) Goods sold for cash are called:
(A) Credit sale
(B) Deferred sale
(C) Cash sales
(D) Current sale
Answer: Option C
10) Goods Returned from customers are known as:
(A) Sales Return
(B) Return outward
(C) Customers Return
(D) Purchase Return
Answer: Option A
11) In the double entry system the transaction affects:
(A) Debit and Credit side of the same account
(B) Two accounts
(C) One account only
(D) Two accounts debited
Answer: Option B
12) Discount allowed by the trader on the list price is:
(A) Cash discount
(B) Trade deduction
(C) Trade discount
(D) Cash deduction
Answer: Option B
13) The art to record the business dealing in a set of books is called:
(A) Accountancy
(B) Bookkeeping
(C) Record keeping
(D) Auditing
Answer: Option B
14) The art of measuring, calculating, and conclusion of business activities is called:
(A) Cost Accounting
(B) Financial Accounting
(C) Record keeping
(D) Management Accounting
Answer: Option B
15) The financial information provided by an accounting system is needed by:
(A) Owners
(B) Management
(C) Creditors
(D) All above three
Answer: Option D
16) The work under which transactions of a similar kind are recorded separately is known as:
(A) Interpretation
(B) Classifying
(C) Recording
(D) None of above
Answer: Option B
17) Cash discount is provided on:
(A) Payment after the due date
(B) Payment before the due date
(C) Also known as a trade discount
(D) Sales
Answer: Option B
18) Amount received or to be received on goods & services sold is called:
(A) Cash
(B) Expenses
(C) Income
(D) Discount
Answer: Option C
19) The goods and services exchanged in term of money is known as:
(A) Goods transactions
(B) Cash transactions
(C) Services transactions
(D) Business transactions
Answer: Option D
20) When payment or receipt is postponed for a future date the transaction is called:
(A) Credit transaction
(B) Cash transaction
(C) None of these
(D) No transaction
Answer: Option A
21) The purchase return is also known as:
(A) Return inward
(B) Return outward
(C) Sales return
(D) None of these
Answer: Option B
22) Sales return is also known as:
(A) Return outward
(B) Purchase return
(C) Return inward
(D) None of these
Answer: Option C
33) The merchandise is written in bookkeeping is recorded as:
(A) Asset
(B) Expenses
(C) Sales or purchases
(D) Revenue
Answer: Option C
24) The system of recording transactions in which a single side is written is called:
(A) Double entry
(B) Management system
(C) Single entry
(D) Double account system
Answer: Option C
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