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MCQs For Accounting Principles and Procedures PDF
MCQs For Accounting Principles and Procedures PDF
A) Cash
B) Bank statement
C) Transaction
D) Exchange of money
A) Communicating→Recording→Identifying
B) Recording→Communicating→Identifying
C) Identifying→communicating→recording
D) Identifying→recording→communicating
A) Analysing
B) Preparing financial statements
C) Recording financial information
D) Auditing the books of accounts
A) Government agencies
B) investors
C) Creditors
D) Managers
Q-6 For which step of accounting process the accountants of business entity
prepare financial statements?
Q-7 Keeping the log of financial information in books of original entries is called
A) Recording
B) summarizing
C) Grouping
D) Processing
Q-13 ________ is a separate legal entity that Total capital can be divided in many
shares
A) Partnership
B) Sole proprietorship
C) Company
D) Non-profit organization
A) Resources
B) Obligations
C) Future benefits
D) Expenses
Q-17 The gross decrease in economic benefits for the business are what?
A) Expenses
B) Obligations
C) Creditors
D) Income or gain
A) Possessed
B) Owned
C) Controlled
D) Used
A) Present event
B) Future event
C) Past event
D) Non of them
Q-20 Which of the following can be considered as the most important phase of
accounting cycle and it is the primarily objective of financial accounting?
A) Identifying transactions
B) Preparing "T Accounts"
C) Preparing financial statements
D) Preparing trial balances
Q-21 Which is the most important characteristic that all assets of a business
have?
A) Capital+Liabilities=Assets
B) Assets+ liabilities =Capital
C) Capital+assets=liabilities
D) Liabilities+Capital
A) Cash
B) Equipment
C) Debtors
D) Creditors
Q-26 _______ the withdrawal of cash and goods by the owner of the business for
his/her personal use
A) Depreciation
B) Drawings
C) Outflow of cash
D) Appreciation
A) Machinery account
B) Building account
C) Creditors account
D) Rent expenses account
ANSWERS:
1 A 2 C 3 D 4 C 5 D 6 B 7 A 8 B 9 C 10 D
11 A 12 A 13 C 14 A 15 B 16 C 17 A 18 C 19 C 20 C
21 D 22 A 23 D 24 C 25 A 26 B 27 A 28 C 29 D 30 D
A) Purchase journal
B) Sales journal
C) Purchases return journal
D) Sales return journal
A) Purchase journal
B) Sales journal
C) Purchases return journal
D) Sales return journal
Q-3 Transactions that a BUSINESS doesn't record in any specialised journal are
recorded in which of the following journals or day books?
A) Specialized journal
B) Day book
C) Cash book
D) Record book
Q-5 Which of the following specialised journals will record "goods returned by
the BUSINESS "?
A) Purchase journal
B) Sales journal
C) Purchases return journal
D) Sales return journal
A) Credit sales
B) Credit purchases
C) Credit sales and purchases
D) Cash sales and purchases
Q- 7Cash received from debtor is recorded in which of the following
SPECIALIZED journals?
A) Purchase journal
B) Sales journal
C) Cash receipts
D) Cash payments journal
Q-8 Which of the following is a type of cash receipt journal + cash payment
journal?
A) Bank statement
B) Statement of cash flow
C) Cash book
D) Cash documents
A) Purchase journal
B) Sales journal
C) Purchases return journal
D) Cash payments journal
A) Narration
B) Explanation
C) Summary
D) Other information
11. Credit purchase of plant and machinery is recorded in which of the following
journals?
A) General journal
B) Cash journal
C) Purchase journal
D) Purchase return journal
12. Debit note is the basis for recoding a transaction in which of the following
journals?
A) General journal
B) Cash journal
C) Purchase journal
D) Purchase return journal
13. SALE of old furniture" will be recorded in which of the following specialised
journals?
A) Purchase journal
B) Sales journal
C) General journal
D) Cash receipt journal
14. Credit note is the basis for recording a transaction in which of the following
SPECIALIZED journals?
A) Purchase journal
B) Sales return journal
C) General journal
D) Cash receipt journal
15. Specialized journals are more adequate for which TYPE OF BUSINESSES ?
A) Small businesses
B) Big businesses
C) Sole proprietorship
D) Partnership
16. Which of the following is known as an evidence that a transaction took place?
17. BUSINESS paid rent amounting to $100" which of the following specialized
journals records this transaction?
Q-18 Credit memo or credit note No. is entered in which of the following journal?
A) General journal
B) Cash journal
C) Purchase journal
D) Sales return day book
ANSWER:
1 D 2 B 3 D 4 B 5 C 6 D 7 C 8 C 9 D 10 A
11 A 12 A 13 C 14 B 15 B 16 C 17 B 18 A.