Top 50+ Solved Principles of Accounting MCQ Questions Answer
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. According to which principle the same accountingmethods should be used each year:
a. Prudence
b. Full disclosure
c. Materiality
d. Consistency
Q. The elements of the accounting equation are
a. A) Assets, Liabilities,Capital
b. Liabilities,Capital
c. Liabilities
d. Capital
Q. Arun is a Book-seller, which item will be goods for hisbusiness ?
a. Purchase ofComputer
b. Purchase of Fan
c. Purchase ofFurniture
d. Purchase ofStationery
Q. The expenses due but not paid is known as -
a. Prepaid Expenses
b. Debtors
c. Outstanding Expense
d. Bills Receivable
Q. Which is correct.I)Dr. the receiver,Cr. the Giver II)Dr. what goes out,Cr. what comes in III)Dr. all Expenses,Cr.All Losses
a. Only I
b. Only II and III
c. ALL I,II and III
d. Only I and II
Q. Goods destroyed by fire should be credited to
a. Puchases A/c
b. Sales A/c
c. Loss by fire A/c
d. InsuranceA/c
Q. In the books of account if a transaction is completelydeleted, will it affect the trial balance?
a. No
b. Yes
c. A transactioncannot be omitted
d. May be
Q. The respective normal account balances of Sales, SalesReturns , and Discounts allowed are?
a. Credit, Credit, Credit
b. Debit, credit,debit
c. Credit, Debit,Debit
d. Credit, Debit,Credit
Q. Trial balance is not a conclusive proof of accuracy due to which errors.I)Error of omission II)Error of Principle III)Error of Commission IV)Compensatory Errors
a. All I,II,III and IV
b. Only I,II and III
c. Only I,II and IV
d. Only II and III
Q. Which of the following is not the external user ofaccounting information?
a. Government
b. Shareholders
c. Tax Authorities
d. Financialinstitutions
Q. refers to the order in which the various assets and liabilities are shown in the Balance Sheet.
a. Grouping
b. Order ofpermanence
c. Marshalling
d. Order ofliquidity
Q. If closing stock is mentioned in trial balance,Where is itshown in Final Accounts?
a. Credit side of TradingA/c
b. Asset side ofBalance Sheet
c. Both A and B
d. Not shownanywhere
Q. Which one is false. I)Capital Expenditure is non recurring in nature and shown in P&L account. II)Revenue expenditure is incurred to conduct day today activities
a. Both I and II
b. Only I
c. Only II
d. None is false
Q. Where do we show Provision of bad debts in final accounts if given in adjustments? I)Debit side of P&L II)Credit side of P&L III)Deduct from Debtors in BalanceSheet IV)Add to Debtors in Balance Sheet
a. I and III
b. II and IV
c. II and III
d. I and IV