Accounting MCQs

Question 1

Payment of expenses will ______ the assets

Accepted Answer

Reduce

Answer

Increase

Answer

Apportion

Answer

Overstate

Question 2

Which of the following accounting equation is correct?

Accepted Answer

Assets - Liabilities = Capital

Answer

Cash + Other assets = Capital - Liabilities

Answer

Capital + Liabilities = Assets + Income

Answer

Assets + Capital = Liabilities

Question 3

Fresh capital introduction will increase

Accepted Answer

Assets and Equity

Answer

Assets and Liabilities

Answer

Liabilities and equity and bank balance

Answer

Capital and Liabilities

Question 4

Current Assets - Current Liabilities = ?

Accepted Answer

Working capital

Answer

Capital + Liabilities = assets

Answer

Absorbed capital

Answer

Net assets

Question 5

The process of recording in Journal is done

Accepted Answer

Frequently during the accounting period

Answer

Two times in a year

Answer

Once in a year

Answer

At the end of an accounting period

Question 6

General Journal is a book of _____ entries

Accepted Answer

Original

Answer

First

Answer

Secondary

Answer

Generic

Question 7

The process of recording transactions in different journals is called

Accepted Answer

Journalising

Answer

Posting

Answer

Entry making

Answer

Adjusting

Question 8

Every business transaction affects at least ____ accounts

Accepted Answer

Two

Answer

One

Answer

Three

Answer

Infinite

Question 9

Discount allowed is a kind of deduction from

Accepted Answer

Account Receivable

Answer

Account Payable

Answer

Cash account

Answer

Discount account