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Mcqs For Accounting Principles and Procedures
Mcqs For Accounting Principles and Procedures
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
Q-3 Transactions that a BUSINESS doesn't record in any specialised journal are
recorded in which of the following journals or day books?
Q-5 Which of the following specialised journals will record "goods returned by
the BUSINESS "?
Q-8 Which of the following is a type of cash receipt journal + cash payment
journal?
10. A brief explanation recorded below every entry in general journal is
commonly known as
A) Narration
B) Explanation
C) Summary
D) Other information
11. Credit purchase of plant and machinery is recorded in which of the following
journals?
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?
14. Credit note is the basis for recording a transaction in which of the following
SPECIALIZED journals?
15. Specialized journals are more adequate for which TYPE OF BUSINESSES ?
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?
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.