Accounting MCQs: In this blog post, we have written Accounting for business transaction MCQs and Journal MCQs. Answers are provided for all the MCQs.
The MCQs on “Accounting for the business transaction” and “Journal entries” are important for all commerce students.
Accounting for business transaction MCQs
1. ——————— accounting system is the combination of both cash as well as on credit.
Cash basis
Credit system
Hybrid System
None of the above
2. Increase in Asset is
Debited
Credited
Ignored
None of the above
3. Increase in Liabilities is
Debited
Credited
Ignored
None of the above
4. Which is not the features of Accounting Vouchers?
It is a written document.
It is prepared by labour.
It is prepared on the basis of evidence of the transaction.
It contains an analysis of a transaction.
5. Which is not the business transaction.
X commences the business with cash Rs. 50,000.
He purchased goods for cash Rs. 18,000
He got a gift worth Rs. 7,000 in a family function.
He deposited cash into bank Rs. 20,000
6. Which is the business transaction?
Suresh sold goods for cash Rs.30,000
X paid house tax for his own house
A deposited into bank Rs. 6,000 as school fee for his children
He purchased house hold goods worth Rs. 8,000
7. The terms of an accounting equations can be presented as under;
Assets = Liabilities – Capital
Capital= Assets – Liabilities
Assets = Capital + Liabilities
Liabilities= Assets – Capital
8. The fundamental rule for recording changes in Assets/Expenses/Losses is
Increase in liabilities is credited and decrease in liabilities is debited.
Increase in Assets is debited and decrease in Assets is Credited.
Increase in capital is credited and decrease in capital is debited.
Increase in expenses/losses is credited and decrease in expenses/losses is debited.
MCQs on Journal Entries
9. Depreciation reduces the value of —————————-
Asset
Liability
Goodwill
None of the above
10. No entry is made for ————– discount in the Journal.
Cash
Trade
Both
None of the above
11. Accrued Income is —————– in the Journal
Debited
Credited
Ignored
None of the above
12. A combination of two or more simple Journal entries is known as
Single Entry
Double Entry
Compound Entry
Ledger Entry
13. Drawings _____________ the amount of Capital
Reduce
Increase
Balance
None of these
14. Another name for Journal is
Book of original records
Transaction
Entry
Cash records
15. Which is not the column of a Journal?
Particulars
Ledger Folio
Journal Folio
Date
16. Brief explanation of a journal entry is known as
Transaction
Journalising
Narration
Processing
17. Which is not the compound entries?
Discount allowed
Bad debt
Discount received
Sales
MCQs on Ledger
18. The page number of the journal is entered in the ———————– column in the ledger account.
L F
J F
Date
None of these
19. Ledger is known as ——————-
Primary Book
Secondary Book
Cash Book
Sales Book
20. The Revenue and expense accounts are closed by taking the balances to —————————–
Ledger
Trading and Profit loss A/c
Balance sheet
Trial Balance
21. Assets ledger does not contain:
Capital account
Machinery account
Building account
Furniture account
22. Revenue ledger contains
Building account
Loan account
Sales account
Bank overdraft account
23. _____________ contains rent paid, wages paid, electricity charges etc.
Creditors ledger
General ledger
Debtors ledger
Expenses ledger
24. Name of the account in the journal is entered in _________ column of the relevant account in the ledger.
Particulars
Transaction
JF
LF
25. The balance of an account is written on the side having ______ total, so that its total becomes equal to the total of other side.
Higher
Lower
Same
None of the above
26. The balance of _________ accounts are debit balances.
Liability
Capital
Asset
None of the above
27. Which of the following columns does a ledger have-
Date
Particulars
JF
All of the above