Accounting MCQs

Question 1

Which of the following is a long term liability?

Accepted Answer

Debentures

Answer

Outstanding expenses

Answer

Share capital

Answer

All of the above

Question 2

Drawing is a type of

Accepted Answer

Withdrawal of capital

Answer

Expense

Answer

Income

Answer

None of the above

Question 3

Profit is a part of

Accepted Answer

Owner's capital

Answer

Income

Answer

Assets

Answer

All of the above

Question 4

Petty cash is used for payment of

Accepted Answer

Small expenses relating to postage's and conveyance etc.

Answer

Salaries & wages of the staff

Answer

For purchase of assets

Answer

All of the above

Question 5

Promissory note is prepared by

Accepted Answer

Drawer

Answer

Endorsee

Answer

Drawee

Answer

All of the above

Question 6

Which reserve is not shown in the Balance sheet?

Accepted Answer

Secret reserve

Answer

General reserve

Answer

Capital reserve

Answer

All of the above

Question 7

Which liability is not included in the total of Balance Sheet?

Accepted Answer

Contingent liabilities

Answer

Current liabilities

Answer

Fixed liabilities

Answer

All of the above

Question 8

Revenue expenditures are recorded in the

Accepted Answer

All of the above

Answer

Manufacturing account

Answer

Trading account

Answer

Profit & loss account

Question 9

In case of opening Credit Balance, the word ______ are written on the credit side.

Accepted Answer

By Balance b/d

Answer

To Balance b/d

Answer

By Balance c/d

Answer

To Balance c/d