MCQs for Accounting Principles and Procedures

8/16/2019 MCQs for Accounting Principles and Procedures

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MCQs for Accounting Principles and Procedures

Q-1 The accounting process involves in recording:

A) Quantifiable economic event

B) Non quantifiable economic event

C) All of them

D) None of them

Q-2 In accounting an Economic event is referred to as:

A) Cash

B) Bank statementC) Transaction

D) Exchange of money

Q-3 Identify the correct sequence of accounting process

A) Communicating!ecor"ing#"entifying

B) !ecor"ingCommunicating#"entifying

C) #"entifyingcommunicatingrecor"ing

D) #"entifyingrecor"ingcommunicating

Q-4 oo!!eeping mainly concerns "ith "hich part of accounting process#

A) Analysing

B) $re%aring financial statements

C) !ecor"ing financial information

D) Au"iting the books of accounts

Q-$ %inancial accounting provides financial information to all of the follo"ing

e&ternal users e&cept:

A) &overnment agencies

B) investors

C) Cre"itors

D) 'anagers


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Q-' %or "hich step of accounting process the accountants of (usiness entity

prepare financial statements#

A) #"entification of economic event

B) Communication of financial information

C) !ecor"ing financial information

D) 'aking "ecisions about business

Q-) *eeping the log of financial information in (oo!s of original entries is called

A) !ecor"ing

B) summari(ing

C) &rou%ingD) $rocessing

Q-+ ,uditing is "hat#

A) !e%orting the financial information

B) Examination of financial statements

C) $re%aration financial statements

D) maintaining the le"ger recor"s

Q- .hich of the follo"ing is the e&ternal user of financial statements#

A) 'anager of the business

B) CE of the business

C) Cre"itor of the business

D) Controller of the business

Q-1/ .hich of the follo"ing is the internal user of financial statements#

A) Cre"itor of the businessB) &overnment agency

C) *harehol"er of the business

D) 'anager of the business

Q-11000000000 is the first phase of accounting cycle


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A) #"entifying an economic event or transaction

B) $re%aring +ournals

C) $osting entries to le"ger accounts

D) 'aking "ecisions about business

Q-12 %inancial statements differ from management account (ecause

A) They are mainly %re%are" for external users of financial information

B) They are more com%lex an" har" to %re%are

C) The are the summary of accounting "ata

D) The are %re%are" on basis of actual conce%t

Q-13 00000000 is a separate legal entity that Total capital can (e divided in manyshares

A) $artnershi%

B) *ole %ro%rietorshi%

C) Com%any

D) Non,%rofit organi(ation

Q-14 ,n asset posses "hich of the follo"ing#

A) -uture economic benefits for the business

B) All kin" of benefits for the business

C) Ex%enses for the business

D) 'erits an" Demerits for the business

Q-1$ ia(ilities are "hich of the follo"ing#

A) !esources

B) bligations

C) -uture benefits

D) Ex%enses

Q-1' 00000000 is the gross inflo" of economic (enefits


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A) Assets

B) .iabilities

C) #ncome

D) Ex%enses

Q-1) The gross decrease in economic (enefits for the (usiness are "hat#

A) Ex%enses

B) bligations

C) Cre"itors

D) #ncome or gain

Q-1+ ,n asset must (e 0000000 (y the (usiness to (e sho"n as an asset in its

(alance sheet

A) $ossesse"

B) /ne"

C) Controlle"

D) 0se"

Q-1 ia(ility are arisen from "hich of the follo"ing events#

A) $resent eventB) -uture event

C) $ast event

D) Non of them

Q-2/ .hich of the follo"ing can (e considered as the most important phase of

accounting cycle and it is the primarily o(ective of financial accounting#

A) #"entifying transactions

B) $re%aring 1T Accounts1

C) $re%aring financial statementsD) $re%aring trial balances

Q-21 .hich is the most important characteristic that all assets of a (usiness

have#

A) .ong life of assets


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B) 2alue of assets

C) #ntangible nature of assets

D) -uture economic benefits

Q-22 .hat is the (asic accounting equation#

A) Ca%ital3.iabilities4Assets

B) Assets3 liabilities 4Ca%ital

C) Ca%ital3assets4liabilities

D) .iabilities3Ca%ital

Q-23 .hich of the follo"ing is a lia(ility#

A) Cash

B) Equi%mentC) Debtors

D) Cre"itors

Q-24 .hat is equity#

A) Cash from the business

B) liability of a business

C) /ner5s claim on total assets

D) /ner5s claim on total liabilities

Q-2$ Identify the asset from the follo"ing

A) Cash an" cash equivalent

B) Cre"itors

C) Notes %ayable

D) Bank loan

Q-2' 0000000 the "ithdra"al of cash and goods (y the o"ner of the (usiness for

hisher personal use

A) De%reciation

B) Dra/ings

C) utflo/ of cash

D) A%%reciation

Q-2) 5et loss occurs "hen


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A) Ex%enses are greater than #ncome

B) Ex%enses are less than #ncome

C) Ex%enses4#ncome

D) .iabilities are greater than income

Q-2+ 6ou(le entry implies that

A) !ecor"ing entries in +ournal

B) !eco"ing entries in .e"ger account

C) !ecor"ing t/o as%ects of every transaction

D) !ecor"ing every transaction in books

Q-2 Identify the nominal account

A) 'achinery account

B) Buil"ing account

C) Cre"itors account

D) !ent ex%enses account

Q-3/ .hich of the follo"ing accounts can (e classified as a real account#

A) !ent ex%enses account

B) !ent income account

C) insurance ex%enses accountD) Cash account

,57.E876

7 A 8 C 9 D : C ; D < B = A > B ? C 7@ D

77 A 78 A 79 C 7: A 7; B 7< C 7= A 7> C 7? C 8@ C

87 D 88 A 89 D 8: C 8; A 8< B 8= A 8> C 8? D 9@ D

Q-1 .hich of the follo"ing speciali9ed ournals records goods returned (y

customers#

A) $urchase +ournal


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B) *ales +ournal

C) $urchases return +ournal

D) *ales return +ournal

Q-2 7ales on credit is recorded in "hich of the follo"ing ournal#

A) $urchase +ournal

B) *ales +ournal



Q-3 Transactions that a 7I5E77 doesn;t record in any specialised ournal are

recorded in "hich of the follo"ing ournals or day (oo!s#

A) Cash %ayments +ournalB) Cash recei%ts +ournal


D) &eneral +ournal

Q-4 ,nother name of ournal is

A) *%eciali(e" +ournal

B) Day book

C) Cash book

D) !ecor" book

Q-$ .hich of the follo"ing specialised ournals "ill record goods returned (y

the 7I5E77 #

A) $urchase +ournal

B) *ales +ournal



Q-' 7ales and purchase ournal don;t record

A) Cre"it sales

B) Cre"it %urchases

C) Cre"it sales an" %urchases

D) Cash sales an" %urchases


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Q- )


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A) &eneral +ournal

B) Cash +ournal

C) $urchase +ournal

D) $urchase return +ournal

13@ 7,E of old furniture "ill (e recorded in "hich of the follo"ing specialised

ournals#

A) $urchase +ournal

B) *ales +ournal

C) &eneral +ournal

D) Cash recei%t +ournal

14@


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C) *ales +ournal

D) $urchase +ournal

Q-1+

MCQs for Accounting Principles and Procedures

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