Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. The fundamental accounting equation Assets = liabilities is the formal expression of
a. Matching concept
b. Entity concept
c. Going concern concept
d. Dual aspect concept
Q. Depreciation is
a. An accounting necessity only
b. Tax necessity only
c. Tax and accounting necessity
d. Tax, account and audit necessity
Q. ‘Every debit has a corresponding credit’ it is the concept of
a. Incomplete records
b. Cost sheets
c. Single entry system
d. Double entry system
Q. Bank loan account is a ______
a. Real account
b. Nominal account
c. Personal account
d. Current account
Q. The process of recording transactions in a journal is known as _______
a. Journalizing
b. Journal
c. Posting
d. Journal entry
Q. Accounting records transactions in term of
a. Commodity units
b. Production units
c. Monetary units
d. Expense units
Q. Expenditure incurred by a publisher for acquiring copyright is a.
a. Deferred revenue expenditure
b. Capital expenditure
c. Revenue expenditure
d. Assets
Q. Loss of cash by theft committed by cashier after business hours is a
a. Revenue loss
b. Deferred revenue loss
c. Capital loss
d. Business loss
Q. An expenditure incurred to derive long term advantage is
a. Revenue expenditure
b. Expense
c. Capital expenditure
d. Deferred capital expenditure
Q. Debit balance of all personal accounts are collectively called
a. Sundry creditors
b. Sundry debtors
c. Personal account balance
d. Total of personal accounts
Q. Discount on issue of share is
a. Capital loss
b. Revenue loss
c. Capital expenditure
d. Revenue expenditure
Q. Trial balance will detect
a. Errors of commission
b. Errors of omission
c. Errors of principle
d. Compensating errors