WorksheetsAccounting MCQs
Total questions: 16
Worksheet time: 8mins
The primary objective of accounting is:
To maintain accounts of creditors
To provide information to users for decision-making
To calculate tax liability
To prepare budgets
Which of the following is not a function of accounting?
Recording transactions
Communicating results
Auditing accounts
Classifying and summarizing data
Which of the following users of accounting information is internal?
Investors
Government
Managers
Creditors
Accounting information is said to be reliable when it is:
Based on estimates
Free from bias
Verified by auditors
Based on forecasts
A limitation of accounting is:
It is based on historical cost
It ensures accuracy always
It gives future predictions
It records non-monetary events
The term "liability" in accounting means:
Property owned by business
Amount payable by business
Owner’s equity
Profit earned by business
Which of the following is not a step in the accounting cycle?
Recording transactions in journals
Preparing trial balance
Preparing payroll
Preparing final accounts
The principle of Consistency refers to:
Recording transactions at cost price
Following the same accounting methods year after year
Recognizing expenses when paid
Recording only cash transactions
The concept that assumes the business will continue indefinitely is:
Money Measurement
Business Entity
Going Concern
Dual Aspect
"Anticipate no profit but provide for all losses" relates to:
Matching principle
Conservatism convention
Materiality principle
Realization concept
Sachin started business with Cash ₹1,00,000. What will be the effect on accounting equation?
Assets increase ₹1,00,000; Capital increases ₹1,00,000
Assets decrease ₹1,00,000; Liabilities decrease ₹1,00,000
Assets increase ₹50,000; Liabilities increase ₹50,000
No effect
Purchased Furniture for Cash ₹5,000.
Assets increase ₹5,000; Liabilities increase ₹5,000
One asset increases ₹5,000; another asset decreases ₹5,000
Assets decrease ₹5,000; Capital decreases ₹5,000
Liabilities decrease ₹5,000; Capital decreases ₹5,000
Purchased Goods for Cash ₹20,000.
Assets increase ₹20,000; Liabilities increase ₹20,000
Assets decrease ₹20,000; Capital decreases ₹20,000
One asset decreases ₹20,000; another asset increases ₹20,000
No effect on accounting equation
Purchased Goods on Credit ₹36,000.
Assets increase ₹36,000; Liabilities increase ₹36,000
Assets increase ₹36,000; Capital increases ₹36,000
Assets decrease ₹36,000; Liabilities decrease ₹36,000
Assets decrease ₹36,000; Capital decreases ₹36,000
Paid Rent ₹700.
Assets increase ₹700; Liabilities increase ₹700
Assets decrease ₹700; Capital decreases ₹700
Assets increase ₹700; Capital increases ₹700
Assets decrease ₹700; Liabilities decrease ₹700
Sold Goods costing ₹40,000 at 20% profit for Cash.
Assets increase ₹48,000; Stock decreases ₹40,000; Capital increases ₹8,000
Assets increase ₹40,000; Capital decreases ₹8,000
Assets decrease ₹48,000; Stock increases ₹40,000
Assets increase ₹8,000; Liabilities increase ₹40,000
