Accounting MCQs

Question 1

Interest on Capital is _____ for the business

Accepted Answer

Expense

Answer

Revenue

Answer

Gain

Answer

None of the above

Question 2

Accounts payable has ____ balance

Accepted Answer

Credit

Answer

Debit

Answer

Unfavorable

Answer

Favorable

Question 3

The concept that "an accountant shouldn't anticipate profit, but must provide for all losses"

Accepted Answer

Conservation concept

Answer

Consistency concept

Answer

Materiality concept

Answer

Reduction concept

Question 4

Patents accounts are

Accepted Answer

Real account

Answer

Secured loan account

Answer

Nominal account

Answer

Debtors account

Question 5

Reserve capital means

Accepted Answer

Part of subscribed uncalled capital

Answer

Accumulated profit

Answer

Part of Capital Reserve

Answer

Part of Capital Redemption Reserve

Question 6

Revenue from sale of product ordinarily is reported as part of earning in the period

Accepted Answer

The sale is made

Answer

The planning takes place

Answer

The product is manufactured

Answer

The cash is collected

Question 7

When will the bill mature if the date of maturity of a bill is a holiday

Accepted Answer

Preceding working day

Answer

Holiday itself

Answer

Other agreed day

Answer

Next working day

Question 8

Memorandum Joint Venture account is a

Accepted Answer

Nominal account

Answer

Personal account

Answer

Real account

Answer

None of the above

Question 9

_____ is not required in Promissory Note

Accepted Answer

Acceptance

Answer

Noting

Answer

Discounting

Answer

None of the above