Fundamentals of Accounting – Multiple Choice Questions (MCQ) with Answers

Fundamentals of Accounting – Multiple Choice Questions (MCQ) with Answers

 

1-Accounting provides information on

(A) Cost and income for managers

(B) Company’s tax liability for a particular year

(C) Financial conditions of an institution

(D) All of the above

(Ans: D)

 

2-The long term assets that have no physical existence but are rights that have value is known as

(A) Current assets

(B) Fixed assets

(C) Intangible assets

(D) Investments

(Ans: C)

 

3-The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as

(A) Current assets

(B) Fixed assets

(C) Intangible assets

(D) Investments

(Ans: A)

 

4-Patents, Copyrights and Trademarks are

(A) Current assets

(B) Fixed assets

(C) Intangible assets

(D) Investments

(Ans: C)

 

5-The following is not a type of liability

(A) Short term

(B) Current

(C) Fixed

(D) Contingent

(Ans: A)

 

6-The liabilities that are payable in more than a year and are not be liquidated from current assets

(A) Current liabilities

(B) Fixed liabilities

(C) Contingent liabilities

(D) All of the above

(Ans: B)

 

7-The debts, which are to be repaid within a short period (year or less) are known as

(A) Current liabilities

(B) Fixed liabilities

(C) Contingent liabilities

(D) All of the above

(Ans: A)

 

8-The sales income (Credit and Cash) of a business during a given period is called

(A) Transactions

(B) Sales returns

(C) Turnover

(D) Purchase returns

(Ans: C)

 

9-Any written evidence in support of a business transaction is called

(A) Journal

(B) Ledger

(C) Ledger posting

(D) Voucher

(Ans: D)

 

10-The accounts that records expenses, gains and losses are

(A) Personal accounts

(B) Real accounts

(C) Nominal accounts

(D) None of the above

(Ans: C)

 

11-Real accounts records

(A) Dealings with creditors or debtors

(B) Dealings in commodities

(C) Gains and losses

(D) All of the above

(Ans: B)