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Basic Accountancy MCQ Quiz

Total questions: 59

Worksheet time: 44mins

Name
Class
Date
1.

Which of the following is NOT an accounting concept?

a)

Business Entity Concept

b)

Going Concern Concept

c)

Dual Aspect Concept

d)

Marginal Utility Concept

2.

Matching principle is related to:

a)

Assets and liabilities

b)

Revenues and expenses

c)

Owners and outsiders

d)

Creditors and debtors

3.

The assumption that a business will continue indefinitely is:

a)

Money Measurement Concept

b)

Going Concern Concept

c)

Cost Concept

d)

Periodicity Concept

4.

Recording transactions at purchase price is as per:

a)

Cost Concept

b)

Realisation Concept

c)

Conservatism Concept

d)

Consistency Concept

5.

"Anticipate no profit but provide for all possible losses" refers to:

a)

Consistency

b)

Prudence/Conservatism

c)

Matching

d)

Duality

6.

GAAP stands for:

a)

Generally Accepted Accounting Principles

b)

Government Accepted Accounting Principles

c)

General Applied Accounting Principles

d)

General Accepted Auditing Practices

7.

Which principle requires consistent use of policies year after year?

a)

Matching

b)

Consistency

c)

Periodicity

d)

Realisation

8.

Financial statements are prepared on the basis of:

a)

Cash basis

b)

Accrual basis

c)

Both

d)

Either

9.

Which principle requires conversion of all transactions into money terms?

a)

Money Measurement

b)

Going Concern

c)

Realisation

d)

Periodicity

10.

Which is an accounting assumption?

a)

Business Entity

b)

Accrual

c)

Conservatism

d)

Matching

11.

Golden rule of Personal Account is:

a)

Debit the giver, Credit the receiver

b)

Debit what comes in, Credit what goes out

c)

Debit all expenses, Credit all incomes

d)

None

12.

Machinery purchased for business is a:

a)

Nominal Account

b)

Personal Account

c)

Real Account

d)

Representative Personal Account

13.

Wages paid is a:

a)

Nominal Account

b)

Real Account

c)

Personal Account

d)

Liability Account

14.

Rent outstanding account is:

a)

Real Account

b)

Personal Account

c)

Nominal Account

d)

Contingent Account

15.

"Debit expenses, Credit incomes" applies to:

a)

Nominal Account

b)

Real Account

c)

Personal Account

d)

Cash Account

16.

Outstanding salaries represent:

a)

Asset

b)

Liability

c)

Income

d)

Expense

17.

Prepaid rent is:

a)

Asset

b)

Liability

c)

Expense

d)

Income

18.

Rule of Real Account is:

a)

Debit the giver, Credit the receiver

b)

Debit what comes in, Credit what goes out

c)

Debit all expenses, Credit all incomes

d)

Debit debtor, Credit creditor

19.

Drawings account is a:

a)

Personal Account

b)

Real Account

c)

Nominal Account

d)

Representative Account

20.

Carriage inward is shown as:

a)

Asset

b)

Expense

c)

Liability

d)

Income

21.

Cash deposited in bank:

a)

Debit Bank, Credit Cash

b)

Debit Cash, Credit Bank

c)

Debit Bank, Credit Capital

d)

Debit Capital, Credit Bank

22.

Goods purchased on credit from X:

a)

Debit X, Credit Purchases

b)

Debit Purchases, Credit X

c)

Debit Cash, Credit Purchases

d)

Debit Purchases, Credit Cash

23.

Sale of goods for cash:

a)

Debit Cash, Credit Sales

b)

Debit Sales, Credit Cash

c)

Debit Purchases, Credit Cash

d)

Debit Sales, Credit Purchases

24.

Commission received:

a)

Debit Cash, Credit Commission

b)

Debit Commission, Credit Cash

c)

Debit Commission, Credit Bank

d)

Debit Income, Credit Commission

25.

Which is NOT a subsidiary book?

a)

Cash Book

b)

Sales Book

c)

Journal Proper

d)

Trial Balance

26.

Trial Balance checks:

a)

Accuracy of financial statements

b)

Arithmetical accuracy of posting

c)

Valuation of stock

d)

Depreciation

27.

Purchase return is entered in:

a)

Sales Return Book

b)

Purchase Return Book

c)

Cash Book

d)

Journal Proper

28.

Posting is done from:

a)

Ledger to Journal

b)

Journal to Ledger

c)

Cash book to Trial Balance

d)

Trial Balance to Ledger

29.

Which error does NOT affect the Trial Balance?

a)

Error of Omission

b)

Error of Commission

c)

Error of Principle

d)

All of the above

30.

Suspense Account is created when:

a)

Journal is incorrect

b)

Trial Balance does not tally

c)

Balance Sheet mismatches

d)

Depreciation is missing

31.

Depreciation is charged on:

a)

Current Assets

b)

Fixed Assets

c)

Investments

d)

Liabilities

32.

Method based on usage is:

a)

Straight Line Method

b)

Written Down Value

c)

Units of Production

d)

Sum of Years Digit

33.

Amortisation is used for:

a)

Tangible Assets

b)

Intangible Assets

c)

Current Assets

d)

Liabilities

34.

Depreciation ensures:

a)

True profits

b)

True assets value

c)

Both a and b

d)

None

35.

Goodwill is written off by:

a)

Depreciation

b)

Amortisation

c)

Appreciation

d)

Provision

36.

Lease rentals paid by lessee are:

a)

Asset

b)

Expense

c)

Income

d)

Liability

37.

Ownership transferred at end of lease is:

a)

Operating Lease

b)

Financial Lease

c)

Cancelable Lease

d)

None

38.

Straight Line Method gives:

a)

Increasing depreciation

b)

Equal depreciation

c)

Decreasing depreciation

d)

No depreciation

39.

Residual value is deducted from:

a)

Asset cost for depreciation

b)

Liability value

c)

Income

d)

Expense

40.

Depreciation under Companies Act is based on:

a)

WDV

b)

SLM

c)

Schedule II useful life

d)

None

41.

Balance Sheet shows:

a)

Assets only

b)

Liabilities only

c)

Assets and Liabilities

d)

Expenses

42.

Which is not part of final accounts?

a)

Trading Account

b)

Profit & Loss Account

c)

Balance Sheet

d)

Cash Book

43.

Gross Profit is transferred to:

a)

Balance Sheet

b)

Trading Account

c)

Profit & Loss A/c

d)

Cash Account

44.

Which is NOT an intangible asset?

a)

Trademark

b)

Goodwill

c)

Patents

d)

Land

45.

Outstanding Expenses are shown as:

a)

Bills Receivable

b)

Sundry Debtors

c)

Current Liability

d)

Investment

46.

Which increases working capital?

a)

Purchase of Machinery

b)

Issue of Shares

c)

Payment of Dividend

d)

Purchase of Investments

47.

Appropriation of profit is shown in:

a)

Balance Sheet

b)

Profit & Loss Appropriation A/c

c)

Trading Account

d)

Cash Account

48.

Statement showing financial performance:

a)

Balance Sheet

b)

Profit & Loss A/c

c)

Trial Balance

d)

Cash Flow

49.

Prepaid expenses appear under:

a)

Current Assets

b)

Current Liabilities

c)

Long-term Liabilities

d)

Share Capital

50.

Mandatory under Companies Act, 2013:

a)

Cash Flow Statement

b)

Value Added Statement

c)

Social Cost Statement

d)

None

51.

GST is levied on:

a)

Income

b)

Value Addition

c)

Wealth

d)

Profit

52.

Input tax credit is available to:

a)

Final consumer

b)

Manufacturer/Trader

c)

Employees

d)

None

53.

If GST charged > GST paid, it results in:

a)

ITC

b)

GST Payable

c)

GST Refund

d)

GST Liability

54.

GST is a:

a)

Direct Tax

b)

Indirect Tax

c)

Corporate Tax

d)

Income Tax

55.

Posting means:

a)

Recording in journal

b)

Entering in ledger

c)

Preparing trial balance

d)

Final accounts

56.

GST in India is a:

a)

Single stage tax

b)

Multi-stage, destination-based tax

c)

Origin-based tax

d)

Service tax

57.

Which is NOT a GST component?

a)

CGST

b)

SGST

c)

IGST

d)

CST

58.

E-way bill is required for goods above:

a)

₹25,000

b)

₹50,000

c)

₹1,00,000

d)

₹5,00,000

59.

GST invoice must show:

a)

GSTIN

b)

HSN/SAC codes

c)

Tax rate & amount

d)

All of the above

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