☾★Academy of PakistanTest & Learning

804Active Users

☾★Academy of PakistanTest & Learning

Home Test Study & Learn Past Papers Internships Pakistan Jobs Scholarships PDFs About Us

804Active Users

Home Test Study & Learn Past Papers Internships Pakistan Jobs Scholarships Submit MCQs Profile

Accounting MCQs with Explanations

Read every question, see the correct answer, and understand the explanation at your own pace. Study mode has no timer and no negative marking.

63%

250 of 396MCQs reviewed

Study Mode — explanations are always visiblePrefer a timed quiz? Start test

251AccountingMedium

Specialized journals are more adequate for which TYPE OF BUSINESSES?

ABig businesses

BPartnership

CSmall businesses

Sole proprietorship

Correct answer

A. Big businesses

Explanation

Big businesses is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

252AccountingMedium

Which of these transactions will not be recorded in cash book?

ACash received from debtors

BCash deposited with bank

CSalary remained outstanding

DCash paid to creditors

Correct answer

C. Salary remained outstanding

Explanation

Salary remained outstanding is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

253AccountingMedium

Which one of the following should be considered a revenue expenditure?

ARepair to machinery purchased, second hand.

BDamage paid on account of breach of a contract to supply certain goods

C1000 paid for the execution of a new plant

DLoss of 10,000 incurred in increasing the sitting accommodation of a hotel

Correct answer

B. Damage paid on account of breach of a contract to supply certain goods

Explanation

Damage paid on account of breach of a contract to supply certain goods is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

254AccountingMedium

Income earned but not received is called ____________?

AOutstanding asset

BFictitious assets

CReal asset

DQuick asset

Correct answer

A. Outstanding asset

Explanation

Outstanding asset is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

255AccountingMedium

Which of the following statements is/are true ?

ACash Book is a subsidiary book as well as a ledger

BTotal of Return Outward Book is debited to Return Outward Account

CA sale of an asset is recorded in the Sales Book

DThe balance of Petty Cash Book is a liability

Correct answer

A. Cash Book is a subsidiary book as well as a ledger

Explanation

The sale of an asset is recorded in the Asset Account and not in the Sales book (which pertains to sale of goods). Statement A. is false. Total of Return Outwards book (being purchase return) has a credit balance. The total is transferred at the end of the period to the credit of the Purchase Account and not debited to Return Outwards Account. Statement B. is false. The balance of Petty Cash book is not a liability, it is an asset as it is the balance of cash left with the petty cashier. Statement C. is incorrect. Cash Book is both a subsidiary book or book of original entry where all cash transactions are directly recorded and a ledger, it plays the role as a Cash Account (a ledger). Hence statement D. is true.

256AccountingMedium

IFRS 9 explains about?

AAccounts Payable

BInventory

CAccounts Receivable

DExpenses

Correct answer

C. Accounts Receivable

Explanation

IFRS 9 is an International Financial Reporting Standard (IFRS) published by the International Accounting Standards Board (IASB). It addresses the accounting for financial instruments.

257AccountingMedium

While finalizing the current year‘s accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by 50,000. As a result

APrevious year‘s profit is understated and current year‘s profit is overstated.

BThere will be no impact on the profit of either the previous year or the current year.

CPrevious year‘s profit is overstated and current year‘s profit is also overstated.

DPrevious year‘s profit is overstated and current year‘s profit is understated.

Correct answer

D. Previous year‘s profit is overstated and current year‘s profit is understated.

Explanation

C. Closing stock overstatement and opening stock understatement increases the profits and vice versa is also equally true.

258AccountingMedium

Which of the following is not a feature of a promissory note?

AIt contains an unconditional promise to pay

BIt must be in writing

CIt must be signed by the maker

DIt is payable to the bearer

Correct answer

D. It is payable to the bearer

Explanation

C. According to the Negotiable Instrument Act, promissory note is not payable to the bearer. It must contain an order to pay. So this is not the characteristic of promissory note. Other options are the characteristics of promissory note.

259AccountingMedium

Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________ (prepared by business).

ACash payment journal

BFinancial statements

CCash receipt journal

DCash book

Correct answer

D. Cash book

Explanation

Cash book is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

260AccountingMedium

When owner withdraw cash for its private use, it is called ___________?

ADrawing

BExpense

CProfit

DIncome

Correct answer

A. Drawing

Explanation

Drawing is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

PreviousNext

Study this subject

Browse all 396 questions in groups of ten. Each question also has a permanent page that Google and students can open directly.

Quick facts

Questions396

Study pages40

Current page26

How to learn

Read the question before viewing choices.
Compare the correct answer with alternatives.
Use the quiz after completing a study page.