Accounting MCQs

Question 1

Loss leads to reduction in

Accepted Answer

Capital

Answer

Income

Answer

Liabilities

Answer

None of the above

Question 2

Transaction between business and owner are recorded following ____ concept

Accepted Answer

Business entity

Answer

Periodicity

Answer

Prudence

Answer

Going concern

Question 3

One of the Fundamental accounting assumption is

Accepted Answer

Going concern

Answer

Materiality

Answer

Business entity

Answer

Dual aspect

Question 4

Contra-entries are passed only when

Accepted Answer

Double column cash book is prepared

Answer

Three column cash book is prepared

Answer

Simple cash book is prepared

Answer

None of the above

Question 5

Petty cash balance is

Accepted Answer

Asset

Answer

Liability

Answer

Income

Answer

Expense

Question 6

Dividends are usually paid as a percentage of

Accepted Answer

Paid up capital

Answer

Net profit

Answer

Authorized share capital

Answer

Called up capital

Question 7

A proforma invoice is sent by

Accepted Answer

Consignor to consignee

Answer

Consignee to consignor

Answer

Consignee to debtors

Answer

Debtors to consignee

Question 8

Commission to promote credit sale by consignee is known as

Accepted Answer

Del credere commission

Answer

Over riding commission

Answer

Ordinary commission

Answer

Special commission

Question 9

Errors are _____ mistakes

Accepted Answer

Unintentional

Answer

Intentional

Answer

Undetected

Answer

None of the above