The Accounting Process – 40 Easy MCQs

Here are the 40 Solved MCQs of the Accounting Process. These MCQs will develop your concept and help to improvise your exams preparation. A soft copy of these MCQs is also available.

The Accounting Process (1-20 MCQs)

  1. Purchase of furniture for business on cash is recorded in
    1. Cash book
    1. Sales journal
    1. Purchase journal
    1. General journal
  2. The account invariably having debt balance is
    1. Account payable
    1. Current account
    1. Accounts receivable
    1. Bank account
  3. Which of the following account will invariably have a credit balance?
    1. Discount account
    1. Accounts payable
    1. Accounts receivable
    1. All of the above
  4. Bills receivable book is a part of
    1. Ledger
    1. Income statement
    1. Balance sheet
    1. Journal
  5. Which of the following item is shown as the debit side of a trial balance?
    1. Rent outstanding
    1. Electricity charges outstanding
    1. Prepaid expenses
    1. Purchase return
  6. Rent paid in advance is
    1. Real account
    1. Nominal account
    1. Personal account
    1. All of the above
  7. Stock account is a
    1. Real account
    1. Nominal account
    1. Personal account
    1. None of these
  8. Preparation of a trial balance helps in locating
    1. Errors of principle
    1. Errors of commission
    1. Errors of omission
    1. Clerical errors
  9. A customer’s cheque returned dishonored is recorded in
    1. Sales return book
    1. Purchase return book
    1. Journal
    1. Cash book
  10. Returns inward from a person is entered in
    1. Sales return book
    1. Journal
    1. Cash book
    1. Purchase return book
  11. Sales on account are recorded in
    1. Cash book
    1. Sales book
    1. Journal
    1. Ledger
  12. Machinery purchased on account is recorded in
    1. Purchase book
    1. Journal
    1. Ledge
    1. Cash book
  13. The credit balance in the bank account is
    1. An asset
    1. Capital
    1. A revenue
    1. A liability
  14. Prepaid insurance account normally shows a
    1. Debit balance
    1. Credit balance
    1. Zero balance
    1. Both A&B
  15. Prepaid insurance account is
    1. An asset
    1. An expense
    1. A revenue
    1. A liability
  16. To determine the details of a specific transaction one should refer to
    1. Relevant vouchers
    1. Ledger
    1. Journal
    1. Book of original entry
  17. Miscellaneous expenses account is likely to have
    1. Only credit entries
    1. Only debit entries
    1. Both A&B
    1. None of these
  18. Purchase of a typewriter on account is recorded in
    1. Sales book
    1. Journal
    1. Purchase book
    1. Cash book
  19. An adjusting entry for depreciation is recorded in
    1. Cash book
    1. Purchase book
    1. Sales book
    1. Journal
  20. Which of the following books should be used to record purchase of merchandise an account?
    1. Purchase book
    1. Cash book
    1. Sales book
    1. Journal

[rb_related title=”You May Also Like” total=”2″]

Quiz with Answers

0

The Accounting Process

Quiz with Answers

1 / 40

Purchase of furniture for business on cash is recorded in

2 / 40

The account invariably having debt balance is

3 / 40

Which of the following account will invariably have a credit balance?

4 / 40

Bills receivable book is a part of

5 / 40

Which of the following item is shown as the debit side of a trial balance?

6 / 40

Rent paid in advance is

7 / 40

Stock account is a

8 / 40

Preparation of a trial balance helps in locating

9 / 40

A customer’s cheque returned dishonored is recorded in

10 / 40

Returns inward from a person is entered in

11 / 40

Sales on the account are recorded in

12 / 40

Machinery purchased on the account is recorded in

13 / 40

The credit balance in the bank account is

14 / 40

Prepaid insurance account normally shows a

15 / 40

Prepaid insurance account is

16 / 40

To determine the details of a specific transaction one should refer to

17 / 40

Miscellaneous expenses account is likely to have

18 / 40

Purchase of a typewriter on account is recorded in

19 / 40

An adjusting entry for depreciation is recorded in

20 / 40

Which of the following books should be used to record the purchase of merchandise in an account?

21 / 40

Which of the following accounts have an only credit balance?

22 / 40

The accounts which increase by debit entries is

23 / 40

The account which decreases by debit entries is

24 / 40

Which of the following account is increased by credit entries?

25 / 40

Credit signifies

26 / 40

Debit signifies

27 / 40

A business transaction affects

28 / 40

Left side of asset accounts is for recording

29 / 40

The “Imprest System” is used in relation to

30 / 40

All of the following are books of original entries except

31 / 40

Which of the following shows the chronological record of transactions?

32 / 40

Trial balance is prepared to check

33 / 40

Debit balance of a pass book is a

34 / 40

Which of the following have contra entries?

35 / 40

Bank overdraft facilities are available only in

36 / 40

Salaries paid to an employee is debited to

37 / 40

Bank reconciliation statement is prepared by

38 / 40

Which of the following is recorded in the general journal?

39 / 40

Which of the following error is disclosed by trial balance?

40 / 40

The debts written off as bad, if subsequently recovered are credited to

The Accounting Process (21-40 MCQs)

  1. Which of the following accounts have only credit balance?
    1. Capital account
    1. Reserve fund account
    1. Accounts payable
    1. All of the above
  2. The accounts which increase by debit entries is
    1. Discount earned account
    1. Machinery account
    1. Purchase return account
    1. None of these
  3. The account which decreases by debit entries is
    1. Bank account
    1. Salaries account
    1. Rent account
    1. Owner’s equity account
  4. Which of the following account is increased by credit entries?
    1. Purchase account
    1. Bank overdrafts
    1. Sales return account
    1. Goodwill account
  5. Credit signifies
    1. Decrease in capital account
    1. Decrease in liability account
    1. Increase in asset account
    1. Increase in liability account
  6. Debit signifies
    1. Increase in asset accounts
    1. Decrease in capital account
    1. Decrease in liability account
    1. All of the above
  7. A business transaction affects
    1. At least two account
    1. At least one account
    1. Maximum of two account
    1. None of these
  8. Left side of asset accounts is for recording
    1. Increases
    1. Decreases
    1. Both A&B
    1. None of the above
  9. The “Imprest System” is used in relation to
    1. Sales book
    1. Purchase book
    1. Petty cash book
    1. Cash book
  10. All of the following are books of original entries except
    1. Sales journal
    1. Purchase journal
    1. Cash book
    1. Ledger
  11. Which of the following shows the chronological record of transactions?
    1. Cash book
    1. Journal
    1. Ledger
    1. Trial balance
  12. Trial balance is prepared to check
    1. Valuation of closing stock
    1. Equality of all assets and liability
    1. Arithmetic accuracy of accounting entries
    1. All types of errors
  13. Debit balance of a pass book is a
    1. Plus balance
    1. Zero balance
    1. Minus balance
    1. Both A&B
  14. Which of the following have contra entries?
    1. Three column cash book
    1. Double column cash book
    1. Simple cash book
    1. All cash books
  15. Bank overdraft facilities are available only in
    1. Current account
    1. Fixed deposit account
    1. Saving account
    1. Machinery account
  16. Salaries paid to an employee is debited to
    1. Employee’s account
    1. Salaries account
    1. Cash account
    1. Capital account
  17. Bank reconciliation statement is prepared by
    1. Bank
    1. Customer of the bank
    1. Tax authorities
    1. Proprietor of business
  18. Which of the following is recorded in the general journal?
    1. Purchased furniture on cash base
    1. Purchased machinery on cash base
    1. Depreciation provided on plant and machinery
    1. Paid bills payable by cheque
  19. Which of the following error is disclosed by trial balance?
    1. Error of principle
    1. Error of omission
    1. Wrong amount posted in ledger account
    1. None of these
  20. The debts written off as bad, if subsequently recovered are credited to
    1. Debtors account
    1. Bad debts account
    1. Profit and loss account
    1. Sales account
The Accounting Process
Accounting Process

For more commerce-related material/quizzes, browse the Commerce Category.

Do You Want a Digital Copy of These MCQs?

You can purchase a digital copy of above mentioned all MCQs for just Rs. 20/- (Only Pakistani Users). For further details, you can contact via Whatsapp 0335-4297711,

Please remember, DarsoTadrees is offering free guidance to students. You can support DarsoTadrees on your social networks like Facebook, Twitter, etc.

Leave a Reply

Your email address will not be published. Required fields are marked *

Accounting Standards Accounting Standards

Accounting Standards, Historical Cost, LIFO & FIFO – 35 Easy MCQs

Sole-Proprietors-Partnership-Firms

Sole Proprietors & Partnership Firms – 30 Easy MCQs