Accounting MCQ

Test your knowledge with important Accounting MCQ and their applications. These MCQs are beneficial for competitive exams too. Explore 30+ more Accounting MCQs on Bissoy. Bissoy App

• Which of the following match is not correct?
  ক

  Convertible ⇔ Debenture

  খ

  Participative ⇔ Preference

  গ

  Secured ⇔ Mortgage

  ঘ

  Right share ⇔ Issued to new shareholders
• Which of the following types of goodwill is considered to be the best?
  ক

  Dog goodwill

  খ

  Cat goodwill

  গ

  Rat goodwill

  ঘ

  Cow goodwill
• Which one of the following pair is not correctly matched?
  ক

  Profit and Loss A/c ⇔ Dividend received

  খ

  Profit and Loss (Appropriation) A/c ⇔ Unclaimed Dividend

  গ

  Balance Sheet (Liability side) ⇔ Share-Premium A/c

  ঘ

  Balance Sheet ⇔ Preliminary Expenses (Assets side)
• A company issues 10% irredeemable preference shares. The face value per share is Rs. 100, but the issue price is Rs. 95. What is the cost of preference share?
  ক

  10.63%

  খ

  10.73%

  গ

  10.83%

  ঘ

  10.53%
• Which one of the following pairs is not correctly matched:
  ক

  Secured Mortgage Deed ⇔ Debentures

  খ

  Rights shares ⇔ Issued to new shareholders

  গ

  Convertible ⇔ Debentures

  ঘ

  Redeemable ⇔ Preference shares
• Which of the following pairs is/are correctly matched?
  ক

  When a company issues its securities at a price more than the face value ⇔ Shares issued at discount

  খ

  When shares issued at an amount less than par value of shares ⇔ Shares issued at premium

  গ

  When shares are issued at their face value ⇔ Shares issued at par

  ঘ

  All of the above
• Which account is the odd one out?
  ক

  Office furniture and equipment

  খ

  Freehold land and building

  গ

  Stock of raw materials

  ঘ

  Plant and machinery
• The party who sends the goods for sales on fixed commission basis is known as
  ক

  Drawer

  খ

  Drawee

  গ

  Payee

  ঘ

  Consignor
• No journal entry is required to be passed when there is
  ক

  Loss by theft

  খ

  Normal loss

  গ

  Loss of bad debts

  ঘ

  Abnormal loss of business
• Which liability is not included in the total of Balance Sheet?
  ক

  Current liabilities

  খ

  Contingent liabilities

  গ

  Fixed liabilities

  ঘ

  All of the above
• Which reserve is not shown in the Balance sheet?
  ক

  Secret reserve

  খ

  General reserve

  গ

  Capital reserve

  ঘ

  All of the above
• Which of the following is a long term liability?
  ক

  Outstanding expenses

  খ

  Share capital

  গ

  Debentures

  ঘ

  All of the above
• Which of the following enhances the earning capacity of an asset?
  ক

  Reduction in operating costs

  খ

  Increase in working capacity of an asset

  গ

  Replacing damage parts of an asset

  ঘ

  Both 'b' and 'c'
• _____ will generally show a debit balance
  ক

  Bank loan

  খ

  Bad debts recovered

  গ

  Drawings

  ঘ

  Salary payable
• Which error cannot be revealed on the preparation of trial balance?
  ক

  Wrong totalling of account

  খ

  Compensatory errors

  গ

  Error of commission

  ঘ

  Wrong balancing of an account
• When will the bill mature if the date of maturity of a bill is a holiday
  ক

  Holiday itself

  খ

  Other agreed day

  গ

  Preceding working day

  ঘ

  Next working day
• When the goods are returned to a supplier
  ক

  A Debit note is sent to him

  খ

  An Account sale is sent to him

  গ

  A receipt is sent to him

  ঘ

  Either 'b' or 'c'
• Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation is termed as
  ক

  Contingent liability

  খ

  Liability

  গ

  Provision

  ঘ

  Reserve
• Error which affect only one account can be
  ক

  Error of complete omission

  খ

  Error of posting

  গ

  Compensatory errors

  ঘ

  None of the above
• When obligation is not probable or the amount expected to be paid to settle the liability cannot be measured with sufficient reliability, it is called
  ক

  Contingent liability

  খ

  Provision

  গ

  Secured loan

  ঘ

  None of the above
• Which of the following instruments is not a negotiable instrument?
  ক

  Bearer cheque

  খ

  Promissory note

  গ

  Crossed cheque

  ঘ

  Bills of exchange
• Which of the following sets of expense are the direct expense of business?
  ক

  Wages, Carriage Inward, Octroi

  খ

  Postage, Wages, Carriage Inward

  গ

  Purchases, Wages, Coal Expenses

  ঘ

  Both 'a' and 'c'
• The person from whom the goods are purchased on credit are called
  ক

  Debtors

  খ

  Creditors

  গ

  Accounts receivable

  ঘ

  None of the above
• Those transactions for which there is no separate book, are recorded in the
  ক

  Cash book

  খ

  Bills receivable book

  গ

  Bills payable book

  ঘ

  Journal Proper
• A document sent to customer when he returns the goods is called
  ক

  Promissory note

  খ

  Invoice

  গ

  Credit note

  ঘ

  Debit note
• Which one of the following accounting equations is correct?
  ক

  Assets = Owner's equity

  খ

  Assets = Liabilities + Owner's equity

  গ

  Assets = Liabilities - Owner's equity

  ঘ

  Assets + Liabilities = Owner's equity
• Which of the following inventory valuation methods show higher profits during the period of rising prices?
  ক

  FIFO

  খ

  LIFO

  গ

  Weighted average cost method

  ঘ

  Simple average method
• Which of the following appears in the profit and loss appropriation account?
  ক

  Interest on debentures

  খ

  Dividend

  গ

  Provision for taxation

  ঘ

  Provision for bad debts
• Which of the following is a leverage ratio?
  ক

  Debt equity ratio

  খ

  Current ratio

  গ

  Quick ratio

  ঘ

  Earning power
• Under cash basis of accounting, revenue is recognized when
  ক

  Sale is made

  খ

  Cash is received

  গ

  Goods are delivered

  ঘ

  Services are rendered