Multiple Choice Questions (MCQ) on Accountancy
1-The Accounting Equation is based on _____ .
(A) money measurement concept
(B) going concern concept
(C) dual aspect concept
(D) All of the above
2-Provision for bad debts is made on the basis of the principle of _____ .
(A) revenue matching
(B) conservatism
(C) full disclosure
(D) both (A) and (B)
3-Accounting principles are generally based on _____ .
(A) convenience in recording
(B) simplicity
(C) subjectivity
(D) practicability
4-According to realization concept, revenue is recognized when _____
(A) the products are manufactured
(B) the sale is made
(C) the planning take place
(D) the cash is collected
5-Which principle is often described as “anticipate no profits and provide for all possible losses”?
(A) Consistency principle
(B) Conservatism principle
(C) Accrual principle
(D) Matching principle
6-Cost of goods purchased for resale is an example of _____ .
(A) capital receipt
(B) capital expenditure
(C) revenue expenditure
(D) deferred revenue expenditure
7-Capital income is synonymous to the term _____.
(A) revenue expenditure
(B) revenue gain
(C) capital loss
(D) capital gain
8-Purchase of patent rights is a _____ .
(A) capital expenditure
(B) business expenditure
(C) revenue expenditure
(D) deferred expenditure
9-Which of the following is not an Adjustment under Current Cost Accounting Method?
(A) Purchasing Power Gain
(B) Gearing Adjustment
(C) Depreciation Adjustment
(D) Cost of sales Adjustment
10-The following is not considered in Monetary Working Capital Adjustment.
(A) Creditors
(B) Debtors
(C) Cash
(D) None of the above
11-Events are considered only _____
(A) on the last day of the accounting year
(B) on the first day of the accounting year
(C) during the accounting year
(D) Both A and B
ANSWERS:
1-(C), 2-(D), 3-(A), 4-(B), 5-(B), 6-(C), 7-(D), 8-(A), 9-(A), 10-(C), 11-(A)