Basic Accounts MCQ

The main Purpose of Financial Accounting is?

• To Provide financial information to shareholders

• To maintain balance sheet

• To minimize taxes.

• To keep track of liabilities

What type of balance do asset accounts have?

• Contra

• Debit

• Credit

• None of the above

What are the long-term assets which do not have any physical existence?

• Current Assets

• Tangible Assets

• Current Liabilities

• Intangible Asstes

Which of the following is correct ?

• Income tax is a trade expense

• Closing Stock shown in Trial Balance is recorded in Balance Sheet

• Prepaid Expenses Account is Nominal Account

• None of the above

The main objective of Book-keeping is to:

• find out profit or loss

• keep correct and complete record of business transactions

• show the correct position of assets and liabilities

• examine the accuracy of business transactions

Debit what comes in and credit what goes out is the rule of _________.

• Personal Account

• Real Account

• Nominal Account

• Assets Account

Which one of the following is a real account?

• Salary Account

• Mr. Ram's Account

• Building Account

• Interest expense account

Net profit is calculated in which of the following account?

• Profit and loss account

• Balance sheet

• Trail Balance

• Trading Account