Accounting MCQs

Question 1

A debit balance in the bank statement indicates

Accepted Answer

Bank overdraft

Answer

Cash at bank

Answer

Over payment to creditors

Answer

Cash in hand

Question 2

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

Accepted Answer

Reduce the profit of the concern

Answer

Creates future benefits

Answer

Incurred to acquire fixed assets

Answer

Incurred to increase the economic life of existing fixed assets

Question 3

Which of the following is not an item of Balance Sheet?

Accepted Answer

Sales revenue

Answer

Accounts receivable

Answer

Accounts payable

Answer

Marketable securities

Question 4

In an account, when credit side total < debit side total, then, the balance is known as

Accepted Answer

Debit balance

Answer

Negative balance

Answer

Positive balance

Answer

Credit balance

Question 5

Which of the following is used to record financial transactions in chronological (day-to-day) order?

Accepted Answer

General Journal

Answer

Voucher

Answer

General Ledger

Answer

Trial Balance

Question 6

Net Profit = Gross Profit minus

Accepted Answer

Operating expenses

Answer

Product cost

Answer

Deferred expenses

Answer

Direct cost

Question 7

Money spent to acquire or upgrade physical assets is known as

Accepted Answer

Capital expense

Answer

Revenue expense

Answer

Administrative expense

Answer

Operating expense

Question 8

Salaries paid in advance should be shown on

Accepted Answer

Asset side of the Balance sheet

Answer

Liability side of the Balance sheet

Answer

Credit side of the Trading account

Answer

All of the above

Question 9

Which of the following assets are shown at written down value in Balance sheet?

Accepted Answer

Fixed asset

Answer

Current assets

Answer

Liquid asset

Answer

Floating assets