Accounting MCQs

Question 1

The maximum amount with which a company is registered is called

Accepted Answer

Authorized capital

Answer

Issued capital

Answer

Paid up capital

Answer

Called up capital

Question 2

Which one of the following is NOT true about revenue expenditure?

Accepted Answer

They improve the financial position of the business

Answer

These are the running expenses of the business

Answer

They reduce the profit of the concern

Answer

They do not appear in the balance sheet

Question 3

Which one of the following statement is CORRECT about long term liabilities?

Accepted Answer

These consist of all debts, payabke after 12 months

Answer

These are due within one year

Answer

In working capital, these are deducted from current assets

Answer

All of the above

Question 4

Which one of the following can offer its share to public at large?

Accepted Answer

Listed company

Answer

Private limited company

Answer

Partnership firm

Answer

Trust

Question 5

The persons who sign Articles and Memorandum of the company and contribute in the initial share capital of the company are called

Accepted Answer

Subscribers

Answer

Shareholders

Answer

Managers

Answer

Directors

Question 6

Which of the following are the owners of a company?

Accepted Answer

Shareholders

Answer

Proprietors

Answer

Partners

Answer

Managers

Question 7

General office expenses are charged to which of the following head?

Accepted Answer

Administrative expenses

Answer

Marketing expenses

Answer

Selling expenses

Answer

Financial expenses

Question 8

Stock of a Trading concern consists of

Accepted Answer

Merchandise inventory

Answer

Raw material

Answer

Work in progress

Answer

All of the above

Question 9

Expenditure incurred annually on renewal of patent is a

Accepted Answer

Revenue expenditure

Answer

Capital expenditure

Answer

Financial expenditure

Answer

Operating expenditure