📊
Accounting MCQs
Financial accounting, bookkeeping & balance sheets · 10 MCQs
1–10 of 10 MCQs
1
The accounting equation is:
AAssets = Liabilities + Capital
BAssets = Liabilities − Capital
CCapital = Assets − Liabilities + Profit
DAssets + Capital = Liabilities
2
A debit entry increases which account?
ALiability account
BRevenue account
CAsset account
DCapital account
3
Depreciation is charged on:
ACurrent assets
BFixed assets
CLiquid assets
DFinancial assets
4
The document sent by a seller to a buyer showing goods sold and amount owed is called:
ADebit Note
BCredit Note
CInvoice
DReceipt
5
The double-entry bookkeeping system was developed by:
AAdam Smith
BLuca Pacioli
CJohn Keynes
DWarren Buffett
6
Trial Balance is prepared to:
APrepare final accounts
BVerify arithmetic accuracy of ledger
CCalculate profit
DPrepare bank reconciliation
7
Goodwill is an example of:
AFixed asset
BCurrent asset
CIntangible asset
DLiquid asset
8
The profit or loss is transferred to:
ATrading account
BBalance sheet
CCapital account
DSuspense account
9
Current ratio is calculated as:
ACurrent Assets / Current Liabilities
BNet Profit / Sales
CTotal Assets / Total Liabilities
DSales / Total Assets
10
Bad debts are recorded in which account?
ASales account
BDebtors account
CProfit & Loss account
DCash account