Accounting Multiple Choice Questions – Basic Accounting Multiple Choice Questions & Answers

Accounting Objective Questions and Answers

accounting multiple choice questions

Accounting Multiple choice Questions – Accounting Objective Types Questions and Answer  – Top Accounting Questions & Answers – Accounts Objective Types Question with Answer – Objective Types Questions. Basic Accounting questions asked in competitive exams – Basic accounting multiple choice questions and answer, general questions of accounting.

Below we have listed the objective types Accounting Questions and answers – accounting multiple choice questions

The cost of Air-Conditioning of the Manager’s office will be..

  1. a capital expenditure
  2. a revenue expenditure
  3. a deferred revenue expenditure
  4. none of these

Calls in advance’ is shown under..

  1. share capital
  2. reserve and surplus
  3. current liabilities
  4. loans and advances

A loan can be described as a short-term loan if the period is ..

  1. three years
  2. less than one year
  3. over one year
  4. more than two years

How many parties are there in Consignment?

  1. 1
  2. 2
  3. 3
  4. 5

The Total Tax of an assesses has been computed as Rs. 36,523.40. After rounding off, the total tax will be taken as…

  1. Rs. 36520
  2. Rs. 36,525
  3. Rs.36,530
  4. None of these

In the absence of any agreement, partners are liable to receive interest on their loans@

  1. 12%
  2. 10%
  3. 6%
  4. 8%

Goods Costing Rs. 1,00,000 are consigned at 20% on invoice price. What is its Load?

  1. 1,25,000
  2. 25,000
  3. 75,000
  4. 20,000

What time would be taken into consideration if equal monthly amount is drawn as drawing at the beginning of each month?

  1. 7
  2. 6
  3. 5
  4. 6.5

Companies profit divided among shareholder is ..

  1. interest
  2. reserve
  3. dividend
  4. surplus

Debenture carrying charge on particular asset on the company is know as..

  1. fixed
  2. mortgage
  3. naked
  4. floating

Operating profit is

  1. profit after deducting financial costs
  2. profit after deducting taxes
  3. profit after deducting normal operating expenses including depreciation
  4. equal to net profit

Retained earning is synonymous to..

  1. accumulated profit and loss account
  2. profit for the year
  3. operating profit
  4. gross profit

Dividends are usually paid as a percentage of ..

  1. authorized shares capital
  2. net profit
  3. paid up capital
  4. called up capital

Economic life of an enterprise is split into the periodic interval as per..

  1. Money measurement concept
  2. Matching concept
  3. Going concern concept
  4. Accrual Concept

What is the amount of gross profit/loss when opening stock is Rs. 18,000, purchases Rs. 78,000, cost of good sold Rs. 1,06,000 and sales Rs. 1,49,000?

  1. Rs. 44,000 profit
  2. Rs. 42,000 profit
  3. Rs. 43,000 profit
  4. Rs. 43,000 loss

Which of the following is an example of fictitious assets?

  1. Machinery
  2. Stock
  3. Patent
  4. Preliminary Expenses

What is the main purpose of Bank Reconciliation?

  1. To locate cashier’s mistake
  2. Reconciliation of the cash book and bank balances
  3. To find out bank balances
  4. to find out cash balances

Double entry book-keeping was started by

  1. F.W Taylor
  2. Henry Fayol
  3. Lucas Pacioli
  4. Adam Smith

Which financial statement is used to show what the firm owns?

  1. income statement
  2. balance sheet
  3. statement of retained earnings
  4. cash flow statement

According to accounting equation assets are equal to?

  1. liabilities
  2. liabilities and equities
  3. equities
  4. none of these

The accounting cycle represents a series of steps that a business uses

  1. to record and classify the transactions
  2. to summarize the transactions
  3. to communicate financial events
  4. for all of these

The cost concept states that all goods and services purchased should be recorded at

  1. historical cost
  2. market cost
  3. both 1 and 2
  4. none of these

The matching principle attempts to find satisfactory bases of association between

  1. assets and liabilities
  2. expenses and revenues
  3. internal equities and external liabilities
  4. none of these

The Statement that shows the cause of change in the financial position of an organization is known as

  1. balance sheet
  2. funds flow statement
  3. statement of financial position
  4. none of these

The results of business activities are reflected in

  1. profit and loss account
  2. profit and loss appropriation account
  3. balance sheet
  4. none of these

Balance sheet is a statement which discloses an organization’s

  1. assets
  2. liabilities
  3. owner’s equity
  4. all of these

Current liabilities need to be paid

  1. within one accounting cycle
  2. beyond one accounting cycle
  3. within 3 years
  4. within 6 months

Revenue

  1. causes a decrease in shareholder’s equity
  2. causes a decrease or an increase in shareholder’s equity
  3. has no impact on shareholder’s equity
  4. causes an increase in shareholders’ equity

Financially, shareholders are rewarded by

  1. interest
  2. profits
  3. dividends
  4. none of these

Which of the following is not a current assets?

  1. Accounts receivable
  2. Inventory of finished products
  3. Inventory of raw materials
  4. Land

Which of the following is a financial asset?

  1. Inventories
  2. Equipment
  3. Loan to an associate
  4. Accounts receivable

The cash flow statement consists of which of the following sections?

  1. Operating and non-operating
  2. current and non-current
  3. operating, investing and financing
  4. trading and financial

Which of the following is not a long-term liability?

  1. Accounts payable (for payable due in more than one year)
  2. Bank borrowings reimbursable in more than one year
  3. Bank overdrafts
  4. Cash Ratio

When does an accountant record a transaction?

  1. If it is materialized by a concrete document
  2. if it has a tax implication
  3. on Manager’s demand
  4. None of these

Which of the following equations represents the balance sheet?

  1. Assets + Liabilities = Shareholders’ equity
  2. Assets = Liabilities = shareholders’ equity
  3. Assets = Liabilities – Shareholders’ equity
  4. Assets = Liabilities + Shareholders’ equity

Which of the following describes a record of the transactions?

  1. General ledger
  2. Income statement
  3. Balance sheet
  4. Journal

The Four principal qualitative characteristics of useful financial statements are

  1. understandability, relevance, reliability, comparability
  2. timeliness, relevance, reliability, comparability
  3. understandability,relevance, accuracy, comparability
  4. understandability, relevance, reliability, simplicity

Earnings are the result of the difference between

  1. revenue and assets
  2. revenue and liabilities
  3. liabilities and expenses
  4. revenue and expenses

In Which order does the journal list transactions?

  1. alphabetical
  2. decreasing
  3. increasing
  4. chronological

Long term capital loss can be set off from which of the following?

  1. short term capital gain only
  2. long term capital gain only
  3. income from business or profession
  4. income from salary

Accounting Multiple choice Questions – accounting objective questions and answers – basic accounting questions asked in interview for freshers, Accounting Multiple choice Questions. Best Accounting Multiple choice Questions

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