Accountancy and Book Keeping MCQs

Accountancy and Statistics

Accountancy and Book Keeping MCQs

Practice the latest Accountancy MCQs with answers and detailed explanations. Explore chapter-wise multiple-choice questions covering important accounting concepts, bookkeeping, financial statements, journal entries, ledger, trial balance, depreciation, ratio analysis, partnership accounts, company accounts, and more. Perfect for Class 11 & 12, B.Com, CA Foundation, CUET, Banking, SSC, JKSSB, JKPSC and competitive exams.

1861
Total Questions

Practice Questions

Page 22 of 94
Question #421
The concept of 'Going Concern' assumes that:
A. The business is not viable
B. Profits are not important
C. The business will continue operations indefinitely
D. The business will be liquidated soon
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Going concern concept assumes that the enterprise will continue in operation for the foreseeable future, and has no intention to liquidate.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #422
The 'Consistency' concept means that:
A. Same accounting policies should be applied from one period to another
B. Only cash basis should be used
C. Different methods can be used arbitrarily
D. Accounting policies should be changed every year
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Consistency ensures comparability; accounting policies should be consistently applied over time, changes only for valid reasons.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #423
Revenue expenditure is intended to benefit:
A. Current period only
B. Future periods
C. None
D. Both current and future periods
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Revenue expenditure benefits only the current accounting period and is charged to income.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #424
Capital expenditure is recorded in:
A. Profit & Loss Account
B. Trading Account
C. Manufacturing Account
D. Balance Sheet
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Capital expenditure results in acquisition of assets, shown on the asset side of Balance Sheet.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #425
A 'Trial Balance' is a:
A. Statement
B. Ledger account
C. Part of journal
D. Subsidiary book
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Trial Balance is a statement listing all ledger balances to verify arithmetical accuracy.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #426
If a trial balance does not tally, the difference is put to:
A. Profit and Loss account
B. Drawings account
C. Capital account
D. Suspense account
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
A suspense account is opened temporarily to make the trial balance agree pending detection of errors.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #427
Goods returned by customers are recorded in:
A. Cash book
B. Purchase returns book
C. Sales returns book
D. Bills receivable book
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Sales returns or returns inward book records goods returned by customers.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #428
The accounting treatment for loss by fire of uninsured goods is:
A. Debit Capital A/c
B. No entry
C. Debit Profit & Loss A/c
D. Debit Trading A/c
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Loss by fire is abnormal loss, charged to Profit & Loss Account, not to Trading Account.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #429
Carriage outward is shown in:
A. Trading A/c
B. Profit & Loss A/c
C. Balance Sheet
D. Manufacturing A/c
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Carriage outward is a selling and distribution expense, so it appears in Profit & Loss Account.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #430
A credit sale of ₹10,000 to Ram was posted as ₹1,000. This is an error of:
A. Omission
B. Commission
C. Principle
D. Compensation
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Error of commission occurs when a transaction is incorrectly recorded, e.g., wrong amount, wrong posting.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #431
Which of the following is NOT a subsidiary book?
A. Purchase book
B. Cash book
C. Journal proper
D. Trial balance
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Trial balance is a statement, not a book of original entry. Subsidiary books include cash book, purchase book, sales book, journal proper, etc.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #432
The process of transferring entries from journal to ledger is called:
A. Balancing
B. Posting
C. Journalizing
D. Recording
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Posting is the process of transferring debit and credit amounts from journal to respective ledger accounts.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #433
An account is said to have a debit balance when:
A. No entries exist
B. Credit side total exceeds debit side total
C. Both sides are equal
D. Debit side total exceeds credit side total
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Debit balance means total of debit side is greater than credit side.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #434
The main objective of maintaining a Cash Book is:
A. To audit cash
B. To compute profit
C. To record credit transactions
D. To record all cash receipts and payments
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Cash book records all cash and bank transactions, serving both as journal and ledger.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #435
A Bank Reconciliation Statement is prepared by:
A. Auditor of the bank
B. Customer (account holder)
C. Reserve Bank
D. Bank
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
BRS is prepared by the customer to reconcile differences between his records and bank statement.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #436
Which of the following would cause a difference in Cash Book and Pass Book?
A. All of the above
B. Bank charges debited by bank
C. Direct deposit by a customer into bank
D. Interest credited by bank
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
All these items may be recorded by bank but not yet by customer, causing timing differences.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #437
When preparing BRS from Cash Book balance (Dr.), a cheque issued but not yet presented should be:
A. Adjusted in capital
B. Deducted
C. Added
D. Ignored
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
To reconcile to Pass Book, we deduct unpresented cheques because they have already reduced cash book balance but not passbook.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #438
The debit balance in Pass Book indicates:
A. Overdraft
B. Favourable balance
C. Fixed deposit
D. Cash in hand
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Pass Book is a copy of customer's account in bank's books. A debit balance means customer owes bank, i.e., overdraft.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #439
The financial statement that shows profitability for a period is:
A. Profit and Loss Account
B. Funds Flow Statement
C. Cash Flow Statement
D. Balance Sheet
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Profit and Loss Account shows the net profit or loss over a period.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #440
Schedule III of Companies Act, 2013 prescribes:
A. Format of Profit & Loss Account
B. Format of Trial Balance
C. Audit report format
D. Format of Balance Sheet and Profit & Loss Account
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Schedule III provides the format for presentation of financial statements (Balance Sheet and Statement of Profit and Loss) for companies.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

More Accountancy and Statistics Topics

Statistics MCQs
Today's Top Topics
Accountancy and Book Keeping 1861 Statistics 1318
Explore Subjects
Geography GK 6121 Static General Knowledge 6362 Maths 5575 Economy GK 2220 English 15164
Practice Mix
Select the most appropriate meaning of the idiom: 'A queer fish'.
x86-64 is also known as:
My eyes are tired because I ___ on the computer for hours.
He stands ___ the door.
Which railway system is designed exclusively for urban mass rapid transport?