Introduction to Accounting MCQs with Answers

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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