Home » MCQs » Financial Accounting Multiple Choice Questions#27

1) 

What will be debited, If Mr. “A” started business with $2, 00,000


A)  Capital accountWRONG ANSWER

B)  Cash accountRIGHT ANSWER!!!

C)  Mr. A’s account
WRONG ANSWER

D)  Business account WRONG ANSWER


2) 

Cash book is a part of _________ .


A)  VoucherWRONG ANSWER

B)  General JournalWRONG ANSWER

C)  General LedgerRIGHT ANSWER!!!

D)  Trial BalanceWRONG ANSWER


3) 

When income is reduced or decreased, that amount is recorded on:

A)  Right or debit side of the accountWRONG ANSWER

B)  Left or debit side of the accountRIGHT ANSWER!!!

C)  Left or credit side of the accountWRONG ANSWER

D)  Right or credit side of the accountWRONG ANSWER


4) 

What will be debited, if business sold goods for Rs.10, 000 on credit?

A)  Cash accountWRONG ANSWER

B)  Sales accountWRONG ANSWER

C)  Accounts receivable accountRIGHT ANSWER!!!

D)  Purchases account WRONG ANSWER


5) 

A company’s merchandise, raw materials, and finished and unfinished products which have not yet been sold are known as:

A)  SalesWRONG ANSWER

B)  PurchasesWRONG ANSWER

C)  InventoryRIGHT ANSWER!!!

D)  Work in processWRONG ANSWER


6) 

What is nature of Capital account?

A)  DebitWRONG ANSWER

B)  CreditRIGHT ANSWER!!!

C)  ExpensesWRONG ANSWER

D)  LossWRONG ANSWER


7) 

The basic accounting principle/concept according to which business record must be kept separate from the personal records of the owner is known as:


A)  Going-concern conceptWRONG ANSWER

B)  Separate entity principleRIGHT ANSWER!!!

C)  Realization principleWRONG ANSWER

D)  Objectivity principleWRONG ANSWER


8) 

Which of the following is NOT correct?

A)  Decrease in Assets will be creditWRONG ANSWER

B)  Decrease in Liabilities will be debitWRONG ANSWER

C)  Decrease in Expenses will be creditWRONG ANSWER

D)  Decrease in Revenue will be creditRIGHT ANSWER!!!


9) 

What should be credited, if salary is paid to Sohail?


A)  Sohail accountWRONG ANSWER

B)  Salaries accountWRONG ANSWER

C)  Cash accountRIGHT ANSWER!!!

D)  Drawings accountWRONG ANSWER


10) 

Which of the following is NOT correct?


A)  Decrease in Assets will be creditWRONG ANSWER

B)  Decrease in Liabilities will be debitWRONG ANSWER

C)  Decrease in Expenses will be debitRIGHT ANSWER!!!

D)  Decrease in Revenue will be debitWRONG ANSWER



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