Accounting MCQs

Question 1

The normal balance of capital account is

Accepted Answer

Credit balance

Answer

Debit balance

Answer

Cash balance

Answer

Neither debit nor credit balance

Question 2

The normal balance of asset account is

Accepted Answer

Debit balance

Answer

Credit balance

Answer

Cash balance

Answer

Neither debit nor credit balance

Question 3

The normal balance of liability account is

Accepted Answer

Credit balance

Answer

Debit balance

Answer

Cash balance

Answer

Neither debit nor credit balance

Question 4

Which of the following statements is incorrect regarding capital account?

Accepted Answer

Debit increases the capital account balance

Answer

Credit increases the capital account balance

Answer

Fresh capital increases the capital account balance

Answer

Net income increases the capital account balance

Question 5

Which of the following is the normal balance of a rent expense account?

Accepted Answer

Debit balance

Answer

Credit balance

Answer

Cash balance

Answer

Overdraft

Question 6

Revenue and expense accounts are referred to as

Accepted Answer

Nominal accounts

Answer

Real account

Answer

Cash account

Answer

Bank account

Question 7

Office equipment's account is classified as

Accepted Answer

Real account

Answer

Nominal accounts

Answer

Cash account

Answer

Capital account

Question 8

Which of the following are closed at the end of an accounting period?

Accepted Answer

Nominal accounts

Answer

Personal accounts

Answer

Real accounts

Answer

None of them

Question 9

Which of the following is the closing balance of a ledger account?

Accepted Answer

Balance c/d

Answer

Balance b/d

Answer

Balance e/d

Answer

Balance f/c