Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6

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

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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

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43.
What is the basic accounting equation?

A. Capital + Liabilities = assets

B. Assets + Liabilities = Capital

C. Capital + Assets = Liabilities

D. Liabilities - Capital = Assets

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44.
Which of the following is a liability?

A. Cash

B. Equipment

C. Debtors

D. Creditors

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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

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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

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?