Accounting MCQ Questions and Solutions with Explanations

1.
Which of the following is true when a debtor pays his dues?

A. The asset side of the balance sheet will decrease

B. The asset side of the balance sheet will increase

C. The liability side of the balance sheet will increase

D. There is no change in total assets or total liabilities

A. Inventory turnover ratio

B. Debt equity ratio

C. Acid test ratio

D. Proprietary ratio

A. Issued capital

B. Reserve capital

C. Nominal capital

D. Subscribed capital

A. Business entity concept

B. Money measurement concept

C. Cost concept

D. Going concern concept

A. Testing in search for product alternatives

B. Legal work on patent application

C. Modification of design of a process

D. Searching for application of new research findings

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