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MBA Accounting MCQ Question Set 10
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1. The Letter "c" is shown in the Cash book which means _______
consignment
Commitment
Contra Entry
Cash entry
2. Daily Record of Transaction means
Ledger
Journal
Trial Balance
None of these
3. The person to whom the amount has to be paid is known as _______
Drawee
Drawer
Acceptor
Payee.
4. The appropriate book to record credit purchase of machinery is _______
purchases book
journal
cash book
petty cash book.
5. Which account is generally used for rectification of errors?
Memorandum account
Suspense account
Rectification account
Adjustment account
6. Premium received on issue of shares is a ______________. tempor
capital receipt
revenue receipt
deferred capital receipt
deferred revenue receipt
7. The preparation of a Trial balance helps in ______
locating errors in principle
locating errors of omission
locating clerical errors
locating compensatory errors
8. Which one of the following is capital expenditure?
Cost of advertisement
Purchase of a delivery van
Purchase of raw material
Purchase of machine oil
9. Interest on capital is credited to ______ account.
Expenses account
Income account
Capital account
Asset account
10. Receipts and payments account is a _______
Personal account
Nominal account
Real account
Representative account
11. Any amount received towards endowment fund is a ________receipt.
Ordinary
Special
Revenue
Capital
12. Income and expenditure account is a _____
Real account
Nominal account
Personal account
Representative account
13. Sale of old newspaper is to be shown on the credit side of the ______
cash book
income and expenditure
balance sheet
trading account
14. Non-trading institutions prepare ________
profit and loss account
trading account
manufacturing account
income and expenditure account
15. The process of recording financial transactions in the journal is called ______
Journalizing
Utilizing
Posting
Balancing
16. Accounting principles are generally based on _______
practicability
Subjectivity
convenience in recording
Applicability
17. Credit sales are recorded in ______
sales book
cash book
journal proper
purchases book
18. Debit balance in cash book means ______
overdraft as per pass book
overdraft as per cash book
credit balance as per pass book
debit balance as per day book
19. The balance of the petty cash book is ______
an asset
a liability
an income
an expenditure
20. Preliminary expenses are an example of ________
deferred Revenue Expenditure
revenue Expenditure
capital Expenditure
common expenditure
21. Wages is an example of ________
capital expenses
indirect expenses
direct expenses
revenue expenses
22. A bill drawn and accepted for a genuine trade transaction is termed as a _______ bill.
Trade
Time
Inland
Personal
23. Drawings account is related to ______
Nominal Account
Personal Account
Real Account
None of the above
24. Returns outward book makes a record of _______
goods returned to the suppliers
goods returned to customers
goods returned to proprietor
goods returned to neighbors
25. Error of commission do not allow _______
correct totalling of the balance sheet
correct totalling of the balance sheet
the trail balance to agree
correct totaling of the day book
26. Cancelling the original bill and drawing a fresh acceptance is known as ______
retiring under rebate
Discounting
Renewal
bill sent to bank for collection
27. In accounting, the benefit giving aspect is said to be
Debit
Credit
Debit and Credit
None of these
28. The person who writes out the bill of exchange is known as
Payee
Drawee
Drawer
Acceptor
29. The balance of the petty cash book is ______
an asset
a liability
an income
an expenditure
30. Revenue expenditure is intended to benefit _______
current period
future period
past period
both (1) and (2)
31. The person to whom the bill is endorsed is called ______
Endorse
Endorse
Drawe
Drawe
32. Purchases made on credit not recorded at all would affect _______
Purchases account
Suppliers account
Purchases account and suppliers account
Wages account
33. Which item is shown on the debit side of a trial balance?
Rent outstanding
Prepaid expenses
Purchases returns
Excess of income over expenses by the firm
34. The assets of a business can be classified as _______
only fixed assets
only current assets
fixed and current assets
fictitious assets
35. Non-trading institutions prepare _________
Income and expenditure account
Trading and profit and loss account
Only trading account
Only revenue account
36. Sales of old material must be shown on the credit side of ______
cash book
income and expenditure account
balance sheet
Trading account
37. The main aim of ______________ accounting is to ascertain cost relating to the various activities of the business and to have cost control.
financial accounting
cost accounting
management account
human resource accounting
38. Bills payable book is to keep a record of __________
bills payable to creditors
bills received from supplier
credit purchases
credit sales
39. The amount brought in by the proprietor in the business should be credited to:
cash account
capital account
drawing account
bank account
40. If a cheque sent for collection is dishonoured, the debit is given to _______
suppliers account
bank account
customers account
cash account
41. State which of the following errors will not be revealed by the trial balance _______
errors of complete omission
errors of carrying forward
wrong totaling of the purchases book
error of partial omission
42. The balance of cash account indicates _______
. net income for the period
net loss for the period
net cash on hand
net worth of the business
43. Outstanding salaries are shown as _______
an expense
a liability
an asset
an income
44. Prepaid insurance is _______
Nominal account
Personal account
Real account
Prepaid account
45. _______ is the person who prepares Bank Reconciliation Statement.
customer of the bank
ban
neither of the above two
reserve bank of India
46. Provision for bad debts is calculated on _______
creditors
Sales
Purchases
Debtors
47. The discount column of a triple column cash book records _______
trade discount
cash discount
quantity discount
seasonal discount
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