Accounting MCQs | Quiz, Multiple Choice Questions Test

Accounting | Auditing | Commerce | Economics | Finance | Law | Statistics

ACCOUNTING MCQS | BASIC ACCOUNTING QUIZ, MULTIPLE CHOICE QUESTIONS TEST
Accounting Multiple Choice Questions (MCQs) Test Page-1. The following basic accounting quiz are from accounting theory, basics of accounting, general accounting, financial accounting, and cost accounting. Find answers to the accounting questions at the bottom of the page.
FEATURED ACCOUNTING MCQ
1. Which of the following is part of the double entry system?
(A) cash book
(B) sales journal
(C) general journal
(D) trial balance

2. A business has incurred following costs in a financial year:
I. Extension in building = $2 million
II. Repairs to building = = $0.4 million
III. Overhaul to machinery that increased production capacity = $0.5 million
What is the amount of capital expenditure incurred during the year?
(A) $2 million
(B) $2.4 million
(C) $2.5 million
(D) $2.9 million

ANSWER: ACCOUNTING MCQ
1. (A) cash book
2. (C) $2.5 million (See below ↓ for regular Accounting questions)

Page: 1 | 2 | 3 | 4 | 5 | 6 | 7

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

ANSWERS: ACCOUNTING MCQS
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

ACCOUNTING MCQS | MULTIPLE CHOICE QUESTIONS TEST.