Accounting MCQs
Accounting MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
Cash book records?
A: Only cash sales
B: All types of cash receipts and payments
C: Only revenue receipts
D: Only capital receipts
All types of cash receipts and payments
The balance of which of the following accounts do not disappear, once they are debited/credited to Trading Account?
A: Sales
B: Purchases
C: Inward returns
D: Closing stock
Closing stock
Which of the following is an item of capital expenditure?
A: Research and development costs during the year
B: Interest on borrowed fund utilized for acquisition of Office Furniture
C: Installation charges paid in conjunction with the purchase of Office Equipment
D: Monthly rent of a machinery used in the business
Installation charges paid in conjunction with the purchase of Office Equipment
The adjustment to be made for income received in advance is:
A: Add income received in advance to respective income and show it as a liability
B: Deduct income received in advance from respective income and show it as a liability
C: Add income received in advance to respective income and show it as asset
D: Deduct income received in advance from respective income and show it as an asset in the Balance Sheet
Deduct income received in advance from respective income and show it as a liability
Which of the following statements is correct about Trial Balance?
A: The Trial Balance is prepared after preparing the Profit and Loss Account
B: The Trial Balance shows only balances of Assets and Liabilities
C: The Trial Balance shows only nominal account balances
D: The Trial Balance has no statutory importance from the point of view of law
The Trial Balance has no statutory importance from the point of view of law
While finalizing the current years accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by 50,000. As a result
A: Previous years profit is overstated and current years profit is also overstate
B: Previous years profit is understated and current years profit is overstate
D: Previous years profit is overstated and current years profit is understate
Previous years profit is overstated and current years profit is understated.
Which of the following is not correct about Errors?
A: Errors which affect one account can be errors of posting
B: Errors of omission arise when any transaction is left to be recorded
C: Errors of carry forward from one year to another year affect both Personal and Real A/c
D: Errors of commission arise when any transaction is recorded in a fundamentally incorrect manner
If goods worth 1,750 returned to a supplier is wrongly entered in sales return book as 1,570, then
A: Net Profit will decrease by 3,140
B: Gross Profit will increase by 3,320
C: Gross Profit will decrease by 3,500
D: Gross Profit will decrease by 3,320
Gross Profit will decrease by 3,320
Purchase journal is kept to record_____________?
A: All purchases of goods
B: All credit purchases of goods
C: All credit purchases
D: None of these
All credit purchases of goods
The beginnings inventory of the current year is overstated by 5,000 and closing inventory is overstated by 12,000. These errors will cause the net income for the current year by
A: 17,000 (overstated
B: 12,000 (understated
C: 7,000 (understated
D: 7,000 (overstate