Accounting MCQs

Question 1

Identify the asset from the following

Accepted Answer

Cash and cash equivalent

Answer

Creditors

Answer

Notes payable

Answer

Bank loan

Question 2

______ is the withdrawal of cash and goods by the owner of the business for his/her personal use

Accepted Answer

Drawings

Answer

Depreciation

Answer

Outflow of cash

Answer

Appreciation

Question 3

Net loss occurs when

Accepted Answer

Expenses are greater than income

Answer

Expenses are less than income

Answer

Expenses = Income

Answer

Liabilities are greater than income

Question 4

Double entry implies that

Accepted Answer

Recording two aspects of every transaction

Answer

Recording entries in Journal

Answer

Recording entries in Ledger account

Answer

Recording every transaction in books

Question 5

Identify the nominal account

Accepted Answer

Rent expenses account

Answer

Machinery account

Answer

Building account

Answer

Creditors account

Question 6

Which of the following accounts can be classified as a real account?

Accepted Answer

Cash account

Answer

Rent expenses account

Answer

Rent income account

Answer

Insurance expenses account

Question 7

Capital increases if ______ increases

Accepted Answer

Revenue

Answer

Expenses are greater than income

Answer

Drawings

Answer

Interest on capital

Question 8

Capital of a business decreases if there is an increase in

Accepted Answer

Drawings

Answer

Income

Answer

Gains

Answer

Fresh capital

Question 9

Net income equal to Revenues minus

Accepted Answer

Expenses

Answer

Gains

Answer

Depreciation

Answer

Capital expenditure