Top 50+ Solved Business Accounting MCQ Questions Answer
Q. Accounting furnishes data on
a. Income and cost for the managers
b. Financial conditions of the institutions
c. Company’s tax liability for a particular year
d. All the above
Q. Long term assets having no physical existence but, possessing a value are called
a. Intangible assets
b. Fixed assets
c. Current assets
d. Investments
Q. The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as
a. Current assets
b. Fixed assets
c. Intangible assets
d. Investments
Q. The debts which are to be repaid within a short period (a year or less) are referred to as,
a. Current Liabilities
b. Fixed liabilities
c. Contingent liabilities
d. All the above
Q. Any written evidence in support of a business transaction is called
a. Journal
b. Ledger
c. Ledger posting
d. Voucher
Q. The accounts that records expenses, gains and losses are
a. Personal accounts
b. Real accounts
c. Nominal accounts
d. None of the above
Q. Real accounts records
a. Dealings with creditors or debtors
b. Dealings in commodities
c. Gains and losses
d. All of the above
Q. Which accounting concept satisfy the valuation criteria?
a. Going concern, Realisation, Cost
b. Going concern, Cost, Dual aspect
c. Cost, Dual aspect, Conservatism
d. Realisation, Conservatism, Going concern.
Q. A trader has made a sale of Rs.75,500 out of which cash sales amounted to Rs.25,500. He showed tradereceivables on 31-3-2014 at Rs.25,500. Which concept is followed by him?
a. Going concern
b. Cost
c. Accrual
d. Money measurement
Q. A trader purchases goods for Rs. 2500000, of these 70% of goods were sold during the year. At the end of 31st December 2009, the market value of such goods were Rs. 500000. But the trader recorded in his books for Rs. 750000. Which of the following concept is violated.
a. Money measurement
b. Conservatism
c. Consistency
d. None of these
Q. The proprietor of the business is treated as creditor for the capital introduced by him due to_____concept.
a. Money measurement
b. Cost
c. Entity
d. Dual aspect
Q. Fixed assets are held by business for _____.
a. Converting into cash
b. Generating revenue
c. Resale
d. None of the above
Q. Small items like, pencils, pens, files, etc. are written off within a year according to _____ concept.
a. Materiality
b. consistency
c. Conservatism
d. Realisation
Q. Business enterprise is separate from its owner according to _____ concept.
a. Money measurement concept
b. Matching concept
c. Entity concept
d. Dual aspect concept