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Basic Accounts MCQ

Total questions: 8

Worksheet time: 4mins

Name
Class
Date
1.

The main Purpose of Financial Accounting is?

a)

To Provide financial information to shareholders

b)

To maintain balance sheet

c)

To minimize taxes.

d)

To keep track of liabilities

2.

What type of balance do asset accounts have?

a)

Contra

b)

Debit

c)

Credit

d)

None of the above

3.

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

a)

Current Assets

b)

Tangible Assets

c)

Current Liabilities

d)

Intangible Asstes

4.

Which of the following is correct ?

a)

Income tax is a trade expense

b)

Closing Stock shown in Trial Balance is recorded in Balance Sheet

c)

Prepaid Expenses Account is Nominal Account

d)

None of the above

5.

The main objective of Book-keeping is to:

a)

find out profit or loss

b)

keep correct and complete record of business transactions

c)

show the correct position of assets and liabilities

d)

examine the accuracy of business transactions

6.

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

a)

Personal Account

b)

Real Account

c)

Nominal Account

d)

Assets Account

7.

Which one of the following is a real account?

a)

Salary Account

b)

Mr. Ram's Account

c)

Building Account

d)

Interest expense account

8.

Net profit is calculated in which of the following account?

a)

Profit and loss account

b)

Balance sheet

c)

Trail Balance

d)

Trading Account