Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Section 20 Section 21 Section 22 Section 23 Section 24 Section 25

41.
An asset must be ________ by the business to be shown as an asset in its balance sheet.

A. Possessed

B. Owned

C. Controlled

D. Used

Answer & Solution Discuss in Board Save for Later

42.
Which is the most important characteristic that all assets of a business have?

A. Long life of assets

B. Value of assets

C. Intangible nature of assets

D. Future economic benefits

Answer & Solution Discuss in Board Save for Later

43.
What is the basic accounting equation?

A. Capital + Liabilities = assets

B. Assets + Liabilities = Capital

C. Capital + Assets = Liabilities

D. Liabilities - Capital = Assets

Answer & Solution Discuss in Board Save for Later

44.
Which of the following is a liability?

A. Cash

B. Equipment

C. Debtors

D. Creditors

Answer & Solution Discuss in Board Save for Later

45.
What is equity?

A. Cash from the business

B. Liability of a business

C. Owner's claim on total assets

D. Owner's claim on total liabilities

Answer & Solution Discuss in Board Save for Later

46.
Identify the asset from the following

A. Cash and cash equivalent

B. Creditors

C. Notes payable

D. Bank loan

Answer & Solution Discuss in Board Save for Later

47.
______ is the withdrawal of cash and goods by the owner of the business for his/her personal use

A. Depreciation

B. Drawings

C. Outflow of cash

D. Appreciation

Answer & Solution Discuss in Board Save for Later

48.
Net loss occurs when

A. Expenses are greater than income

B. Expenses are less than income

C. Expenses = Income

D. Liabilities are greater than income

Answer & Solution Discuss in Board Save for Later

49.
Double entry implies that

A. Recording entries in Journal

B. Recording entries in Ledger account

C. Recording two aspects of every transaction

D. Recording every transaction in books

Answer & Solution Discuss in Board Save for Later

50.
Identify the nominal account

A. Machinery account

B. Building account

C. Creditors account

D. Rent expenses account

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

Accounting MCQ Questions and Solutions with Explanations | Commerce

41. An asset must be ________ by the business to be shown as an asset in its balance sheet.

Answer & Solution

42. Which is the most important characteristic that all assets of a business have?

Answer & Solution

43. What is the basic accounting equation?

Answer & Solution

44. Which of the following is a liability?

Answer & Solution

45. What is equity?

Answer & Solution

46. Identify the asset from the following

Answer & Solution

47. ______ is the withdrawal of cash and goods by the owner of the business for his/her personal use

Answer & Solution

48. Net loss occurs when

Answer & Solution

49. Double entry implies that

Answer & Solution

50. Identify the nominal account

Answer & Solution

Read More Section(Accounting)

41.
An asset must be ________ by the business to be shown as an asset in its balance sheet.

42.
Which is the most important characteristic that all assets of a business have?

43.
What is the basic accounting equation?

44.
Which of the following is a liability?

45.
What is equity?

46.
Identify the asset from the following

47.
______ is the withdrawal of cash and goods by the owner of the business for his/her personal use

48.
Net loss occurs when

49.
Double entry implies that

50.
Identify the nominal account