Accounting Mcqs Practice Test

Question 1

The accounting process of gradually converting the unexpired cost of fixed assets into expenses  over a series of accounting periods is_________?

Accepted Answer

A. Depreciation

Question 2

If the beginning work in process inventory units are 2600, units started are 9000, ending work in process units are 2300 and the completed good units are 8000 then total spoilage will be ____________?

Accepted Answer

C. 1300 units

Question 3

In support of business transaction, any written evidence is called ___________?

Accepted Answer

B. Voucher

Question 4

The concession received on the price of defective goods is called:

Accepted Answer

C. Allowance

Question 5

Cash brought by the owner to start business is called__________?

Accepted Answer

A. Capital

Question 6

reduction in price is called:

Accepted Answer

D. Discount

Question 7

Sales return is also known as____________?

Accepted Answer

C. Return inward

Question 8

When goods, in which business deals are sold, it is called___________?

Accepted Answer

C. Sales

Question 9

The excess of current assets over current liabilities is called:

Accepted Answer

A. Working Capital

Question 10

Goods return to supplier are known as:__________?

Accepted Answer

B. Purchase return

Question 11

Obligation of the Business are known as___________?

Accepted Answer

A. Liabilities

Question 12

The amount invested by the proprietor to start the business is called:

Accepted Answer

A. Capital

Question 13

Discount received is a/an:

Accepted Answer

D. Revenue

Question 14

Double entry means______________?

Accepted Answer

D. Entry for two aspects of the transaction

Question 15

The person to whom goods are sold on credit is called___________?

Accepted Answer

C. Debtor

Question 16

Modern system of book keeping is called______________?

Accepted Answer

A. Double entry system

Question 17

Goods Return by the customer are termed as :

Accepted Answer

C. Sales return

Question 18

The maintenance of accounts in a systematic way is called__________?

Accepted Answer

C. Book Keeping

Question 19

An Art of reading, classifying & Summarizing of accounts in a systematic way is called__________?

Accepted Answer

A. Accounting

Question 20

A systematic way to maintain the books of accounts is called_________?

Accepted Answer

C. Book Keeping