Accounting MCQs with Answers

A. Accounting B. Reading C. Book Keeping D. Auditing The correct answer to the question: “The maintenance of accounts in a systematic way is called__________?” is “Book Keeping”.

A. Purchase return B. Customer return C. Sales return D. Inventory return The correct answer to the question: “Goods Return by the customer are termed as :” is “Sales return”.

A. Double entry system B. American system C. Single entry system D. Italic system The correct answer to the question: “Modern system of book keeping is called______________?” is “Double entry system”.

A. Buyer B. Seller C. Debtor D. Creditor The correct answer to the question: “The person to whom goods are sold on credit is called___________?” is “Debtor”.

A. Entry in two sets of books B. Entry at two ends C. Entry at two dates D. Entry for two aspects of the transaction The correct answer to the question: “Double entry means______________?” is “Entry for two aspects of the transaction”.

A. Asset B. Expense C. Liability D. Revenue The correct answer to the question: “Discount received is a/an:” is “Revenue”.

A. Capital B. Business C. Drawings D. All of them The correct answer to the question: “The amount invested by the proprietor to start the business is called:” is “Capital”.

A. Liabilities B. Revenues C. Expenses D. Assets The correct answer to the question: “Obligation of the Business are known as___________?” is “Liabilities”.

A. Merchandise return B. Purchase return C. Return inwards D. Sales return The correct answer to the question: “Goods return to supplier are known as:__________?” is “Purchase return”.

A. Working Capital B. Circulating capital C. Fixed capital D. Trading capital The correct answer to the question: “The excess of current assets over current liabilities is called:” is “Working Capital”.