Accounting MCQs

Question 1

Which of the following capital is taken up by the general public?

Accepted Answer

Issued capital

Answer

Subscribed capital

Answer

Authorized capital

Answer

Reserve capital

Question 2

Which of the following items of balance sheet are useful in evaluating a company's liquidity?

Accepted Answer

Current liabilities and current assets

Answer

Current assets and other assets

Answer

Current liabilities and plant and equipment

Answer

In current liabilities and other assets

Question 3

Which of the following can be distributed among the shareholders?

Accepted Answer

General reserve

Answer

Capital reserve

Answer

Revaluation reserve

Answer

All of the above

Question 4

Shares for which amount is paid by public are called ____ shares

Accepted Answer

Paid up

Answer

Authorized

Answer

Bonus shares

Answer

All of the above

Question 5

Which of the following is non-profit organization?

Accepted Answer

Trust

Answer

Sole proprietorship

Answer

Partnership

Answer

Limited company

Question 6

Commercial accounting is based on

Accepted Answer

Double entry book keeping

Answer

Single entry book keeping

Answer

Both single and double entry book keeping

Answer

Cash basis of book keeping

Question 7

An asset that is NOT physical in nature is called

Accepted Answer

Intangible asset

Answer

Liquid asset

Answer

Current asset

Answer

Fixed asset

Question 8

In which of the following interim dividend is treated?

Accepted Answer

In profit and loss appropriation account

Answer

In profit and loss account

Answer

On the asset side of the Balance sheet

Answer

In trading account

Question 9

Which of the following documents contains rules and regulations for internal management of the business?

Accepted Answer

Articles of association

Answer

Memorandum of association

Answer

Prospectus

Answer

Statutory Declaration