Accounting MCQs FPSC NTS PPSC Past Papers Test Questions

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Accounting MCQs questions with answers for FPSC NTS PPSC SPSC KPPSC test preparation. Basic Accounting Multiple Choice Questions (MCQs) Test with answers Page-1. The following basic accounting quiz are from accounting theory, basics of accounting, general accounting, financial accounting, and cost accounting. Link to Accounting MCQs (PDF) is given below. These are the most important and the most repeated accounting questions with answers for test preparation. Answers to the following featured accounting questions are given after the third accounting MCQ.

Accounting MCQs

1. Which of the following is a debit entry to a partner’s current account?
(A) Salary
(B) Drawings
(C) Share of profit
(D) Interest on capital

2. Salaries paid to partners is an:
(A) Appropriation of profit among partners
(B) Income of the partnership firm
(C) Expense to partnership firm
(D) None of the above

3. Which of the following business entity is considered as a “legal person” in the eye of law?
(A) Sole trader
(B) Partnership
(C) Company
(D) All of the above

1. (B) Drawings
2. (A) Appropriation of profit among partners
3. (C) Company. See below for regular accounting questions.

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1. The main source(s) of Generally Accepted Accounting Principles (GAAP) is/are:
(A) Company Law
(B) Accounting standards
(C) Both A and B
(D) None of these

2. What standards are used to prepare financial statements by most of the countries and companies
(A) International Financial Reporting Standards
(B) International Financial Accounting Standards
(C) International Accounting & Auditing Standards
(D) International Risk Reporting Standards

3. The correct form of Accounting equation is
(A) Assets + Liabilities = Equity
(B) Assets – Liabilities = Equity
(C) Assets – Receivable = Equity
(D) Assets + Receivable = Equity

4. A company sold goods worth $5,000 on 5 June and $10,000 on 28 June. The company received the first payment on 25 June and second on 7 July. The company prepared the financial statement on 30 June. What would be the total sale on the financial statement?
(A) $0
(B) $5,000
(C) $10,000
(D) $15,000

5. Advance payments are recognized as
(A) receivable
(B) payable
(C) bad debt
(D) none of these

1. (C) Both A and B
2. (A) International Financial Reporting Standards
3. (B) Assets – Liabilities = Equity
4. (D) $15,000
5. (A) receivable. Next: Accounting MCQs 6–10


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