MCQs on Book Keeping And Accounting, mcq on book keeping and accountig
Hello viewers, Today we are going to start MCQs on Book Keeping and Accounting , I hope it will be beneficial for your upcoming exam. (Part-2 From Question No. 16 to 40 )
16.Management Accounting:
(A) Is a clerical work
(B) Is accounting for future
(C) Is a recording technique of the management related transactions.
(D) Is an analysis of past business activities
Ans-(C) Is a recording technique of the management related transactions.
17. On 31st December, 2010 Ashok Ltd. purchased a machine from Mohan Ltd. for 1,75,000. This is
(A) A transaction
(B) An event
(C) Both a transaction as well as an event
(D) None of these
18. On 1st September Kashyap paid rent 2,000. Under which form it will be classified:
(A) An event
(B) an event and also as a transaction
(C) A transaction
(D) Neither a transaction,nor An event
19. Recording business transactions in the books of Accounts using various Source Documents.
A. Book Keeping
B. Record Keeping
C. Accounting
20. Preparation of Financial Statements from records created by Book Keeping
A. Profit and Loss statement
B. Balance sheet
C. Accounting
21. An equation showing the relationship among
(A)Assets, (L)Liabilities, and (C)Capital (Owner's Equity) of a business. Its A=L+C
a. Profit and loss equation
b. Business Equation
c. Accounting Equation
22. The properties/resources owned by a business.
A .Capital Structure
b. Owners property
c. Assets
23. Are the company's debts or obligations. Which will be paid with assets or services.
a. Loans
b. Dues
c. Liabilities
24. The accounts shown in the chart of accounts can be broadly classified into two categories:
a. balance sheet accounts
b. income statement
c. cash flow statement
25. Every transaction will affect how many accounts?
a. Only one
b. Only two
c. Two or More
26. A primary objective of external financial reporting is
A. Direct measurement of the value of a business enterprise.
B. Provision of information that is useful to present and potential investors, creditors, and others in making rational financial decisions regarding the enterprise.
C. Establishment of rules for accruing liabilities
D. Direct measurement of the enterprises stock price.
27. An objective of financial reporting is
A. Providing information useful to investors, creditors, donors, and other users for decision making
B. Assessing the adequacy of internal control.
C. Evaluating management results compared with standards
D. Providing information on compliance with established procedures
28. The bookkeeping or accounting equation is Assets = Liabilities + ?
a. Owners Equity
b. Owners Liability
c. Owners Credit
29. The listing of accounts that are available for posting transactions is the Chart of accounts
a) True b) False
30. There are two main methods of book keeping and accounting. One is cash and the other is
a) Credit b) Accural
c) Banking d) Fiscal
31. Double-Entry bookkeeping means that every transaction will affect two or more accounts.
a) True b) False
32. The separation of duties is part of what?
A. Internal controls for safeguarding assets B. Accounting Standards
33. Managerial accounting information is generally prepared for …………………
a) Shareholders
b) Creditors
c) Managers
d) Regulatory agencies
34. Which of the following is not an internal user of management information?
a) Creditor
b) Department manager
c) Controller
d) Treasurer
35. Which of the following is correct
a) Profit does not alter capital
b) Capital can only come from profit
c) Profit reduces capital
d) Profit increases capital
36. Accounting does not record non-financial transactions because of:
a) Accrual concept
b) Cost concept
c) Continuity concept
d) Money measurement concept
37. The concept of separate entity is applicable to which of following types of businesses?
a.Sole proprietorship
b) Corporation
c. Partnership
d). All of them
38. Which of the following is time span into which the total life of a business is divided for the
purpose of preparing financial statements?
a) Fiscal year
b) Calendar year
c) Accounting period
d) Accrual period
39.Accounting is the process of matching……..
a) Benefits & Costs
b) Revenues & Costs
c) Cash Inflow & Cash Outflow
d) Potential & Real Performance
40.The prime function of accounting is to
a) To record economic data
b) Provide the information basis of action
c) Classifying and recording business transaction
d) Attainmentofeconomic goal
Ans- c) Classifying and recording business transaction
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