Accounting MCQs
Accounting MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
What is the basic accounting equation?
A: Capital+Liabilities=Assets
B: Assets+ liabilities =Capital
C: Capital+assets=liabilities
D: Liabilities+Capital
Capital+Liabilities=Assets
________ is a separate legal entity that Total capital can be divided in many shares.
A: Partnership
B: Sole proprietorship
C: Company
D: Non-profit organization
Company
An asset posses which of the following?
A: Future economic benefits for the business
B: All kind of benefits for the business
C: Expenses for the business
D: Merits and Demerits for the business
Future economic benefits for the business
Liabilities are which of the following?
A: Resources
B: Obligations
C: Future benefits
D: Expenses
Obligations
________ is the gross inflow of economic benefits?
A: Assets
B: Liabilities
C: Income
D: Expenses
Income
The gross decrease in economic benefits for the business are what?
A: Expenses
B: Obligations
C: Creditors
D: Income or gain
Expenses
An asset must be _______ by the business to be shown as an asset in its balance sheet
A: Possessed
B: Owned
C: Controlled
D: Used
Controlled
Liability are arisen from which of the following events?
A: Present event
B: Future event
C: Past event
D: None of them
Past event
Which of the following can be considered as the most important phase of accounting cycle and it is the primarily objective of financial accounting?
A: Identifying transactions
B: Preparing T Accounts
C: Preparing financial statements
D: Preparing trial balances
Preparing financial statements
Which is the most important characteristic that all assets of a business have?
A: Long life of assets
B: Value of assets
C: Intangible nature of assets
D: Future economic benefits
Future economic benefits