Financial Accounting MCQs. Account related Most important Questions and answers PDF. Easy/Basic to advance level Objective Multiple choice MCQ question answer for competitive exams & Interview. Helpful for EPFO, Online Test, PAF, CUET, PPSC, B Com, Banking, Class 11, Class 12, Finance, Aptitude test, ITI, BBA, MBA, SSC, UPSC, BANK PO etc.
Financial Accounting MCQs
1. Accounting is the_______ of monetary transactions.
(a) recording
(b) verification
(c) tallying
(d) all of them
Ans. d
2. Accounting is concerned with transactions involving________.
(a) money
(b) no money
(c) movement of humans
(d) none of them
Ans. a
3. Accounting transactions relate to_______.
(a) income/expense
(b) asset/liability
(c) inventory
(d) all of them
Ans. d
4. Form used to record accounting transactions contains _______columns.
(a) 3
(b) 5
(c) 8
(d) 11
Ans. c
5. First 4 columns of account sheet are used for recording ______.
(a) credit
(b) debit
(c) income
(d) expense
Ans. b
6. Columns 5 to 8 of account sheet are used for recording_______ .
(a) credit
(b) debit
(c) income
(d) expense
Ans. a
7. First column of debit/ credit form is used to record______ of transaction.
(a) date
(b) particulars
(c) Journal Folio
(d) amount
Ans. a
8. Second column of debit/ credit transaction is used to record _____of transaction.
(a) date
(b) particulars
(c) Journal Folio
(d) amount
Ans. b
9. Third column of debit/ credit form is used to record_____ of transaction.
(a) date
(b) particulars
(c) Journal Folio
(d) amount
Ans. c
10. Fourth column of debit/ credit form is used to record______ of transaction.
(a) date
(b) particulars
(c) Journal Folio
(d) amount
Ans. d
11. The method of recording debit and credit sides separated by a line is nicknamed _________ accounting.
(a) T
(b) U
(c) V
(d) W
Ans. a
12. Accounting system which considers assets, liabilities, revenue and expense is called______ method of accounting.
(a) British
(b) American
(c) Indian
(d) none of them
Ans. b
13. Accounting system which considers personal account, real account and nominal account is called _______ method of accounting.
(a) British
(b) American
(c) Indian
(d) none of them
Ans. a
14. Recording of debits and credits of individuals, bank accounts or other business sources is called ________ account.
(a) real
(b) nominal
(c) personal
(d) none of them
Ans. c
15. Recording of debits and credits related to movable assets, immovable assets, inventory (stock needed for production) is called _______account.
(a) real
(b) nominal
(c) personal
(d) none of them
Ans. a
16. Recording of debits and credits related to income, expense, Inflow of money and outflow of money is called _______ account.
(a) real
(b) nominal
(c) personal
(d) none of them
Ans. b
17. _______ concept in accounting considers the business and its owner are different entities.
(a) Business entity
(b) Money measurement
(c) Going concern
(d) Dual aspect
Ans. a
18 . ___concept in accounting considers that only transactions involving money should be recorded.
(a) Business entity
(b) Money measurement
(c) Going concern
(d) Dual aspect
Ans. b
19. ______ concept in accounting considers that the business is a perpetual entity.
(a) Business entity
(b) Money measurement
(c) Going concern
(d) Dual aspect
Ans. c
20. ______concept in accounting considers that each debit has a corresponding credit.
(a) Business entity
(b) Money measurement
(c) Going concern
(d) Dual aspect
Ans. d
21. ______concept in accounting considers that only the actual cost of transaction should be recorded (not the market value of the transaction).
(a) Cost
(b) Accounting period
(c) Matching cost
(d) Accrual
Ans. a
22._______ concept in accounting considers that cost of manufacture should be matched against the proceeds of sales.
(a) Cost
(b) Accounting period
(c) Matching cost
(d) Accrual
Ans. c
23. _______ concept in accounting considers that an account should be closed on a periodic basis and reopened .
(a) Cost
(b) Accounting period
(c) Matching cost
(d) Accrual
Ans. b
24. ______ concept in accounting considers that revenue is recorded on the date of transaction itself but expenditure is recorded only on the date of outlow of money (not the date of transaction, like encashing a cheque).
(a) Cost
(b) Accounting period
(c) Matching cost
(d) Accrual
Ans. d
25. ______ concept in accounting considers that each transaction should be supported by evidence.
(a) Objective evidence
(b) Accounting period
(c) Matching cost
(d) Accrual
Ans. a
26. _______ account debits the receiver and credits the giver.
(a) personal
(b) real
(c) nominal
(d) none of them
Ans. a
27. ______account debits the incoming asset and credits the outgoing asset.
(a) personal
(b) real
(c) nominal
(d) none of them
Ans. b
28. ______ account debits expense and credits the income.
(a) personal
(b) real
(c) nominal
(d) none of them
Ans. c
29. _____ denotes increase in money.
(a) Accrual basis
(b) Asset
(c) Credit
(d) Debit
Ans. c
30. _____ considers incoming money to be instantly available and reduction of cash to occur only on the date of actual outflow of money (instead of the date of transaction).
(a) Accrual basis
(b) Asset
(c) Credit
(d) Debit
Ans. a
31. ______ denotes movable or immovable property and inventory.
(a) Accrual basis
(b) Asset
(c) Credit
(d) Debit
Ans. b
32. ______ considers that each debit has a corresponding credit.
(a) Double entry accounting
(b) Expense
(c) Income or revenue
(d) Debit
Ans. a
33. The evidence/ proof of a financial transaction is called _______.
(a) amount
(b) particulars
(c) date
(d) voucher
Ans. d
34. _______ is a format for recording financial transactions.
(a) amount
(b) particulars
(c) date
(d) voucher
Ans. d
35. Voucher has _____ sides.
(a) 2
(b) 3
(c) 5
(d) 7
Ans. a
36. The left side of a voucher is meant for _______ entries.
(a) rough
(b) unrelated
(c) credit
(d) debit
Ans. d
37. The right side of a voucher is meant for_______ entries.
(a) rough
(b) unrelated
(c) credit
(d) debit
Ans. c
38. ______ voucher changes inventory position.
(a) Accounting
(b) Inventory
(c) Cash
(d) Contra
Ans. b
39. ______ voucher changes monetary position.
(a) Accounting
(b) Inventory
(c) Contra
(d) none of them
Ans. a
40. ______ voucher transfers money from one deposit/loan account to another.
(a) Accounting
(b) Inventory
(c) Contra
(d) none of them
Ans. c