MCQs On Accountancy for JKSSB | Accountancy Questions and Answers

This set contains many important MCQs on Accountancy for JKSSB exams. Solve these best Questions on cash book, trial balance etc to check and enhance your level of preparation for competitive exams.

Best Quiz On Accountancy For JKSSB

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1.The type or branch of accounting that generates reports for the use of external parties such as creditors, investors and government agencies is known as:

1. Financial accounting
2. Managerial accounting
3. Tax accounting
4. Forensic accounting

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2.Which one of the following is not an external user of accounting information?

1. Investor
2. Creditor
3. Manager
4. Customer

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3.Who is known as the father of accounting?

1. Leonardo da Vinci
2. Fra Luca Pacioli
3. Al Khawarizmy
4. Al Mazen

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4.Which of the following is correct about double entry system of accounting?

1. Every business transaction brings at least two financial changes in business.
2. Financial changes are recorded as debits or credits in two or more accounts.
3. Every debit entry has a corresponding credit entry.
4. All of the above

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5.Accounting provides information on:

1. Cost and income for managers
2. Company’s tax liability for a particular year
3. Financial conditions of an institutions
4. All of the above

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6.The long term assets that have no physical existence but are rights that have value is known as:

1. Current assets
2. Fixed assets
3. Intangible assets
4. Investments

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7.The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as:

1. Current assets
2. Fixed assets
3. Intangible assets
4. Investments

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8.Patents, Copyrights and Trademarks are:

1. Current assets
2. Fixed assets
3. Intangible assets
4. Investments

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9.The debts which are to be repaid within a short period (year or less) are known as:

1. Current liabilities
2. Fixed liabilities
3. Contingent liabilities
4. All of the above

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10.The sales income (Credit and Cash) of a business during a given period is called:

1. Transactions
2. Sales Returns
3. Turnover
4. Purchase Returns

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11.Any written evidence in support of a business transaction is called:

1. Journal
2. Ledger
3. Ledger Posting
4. Voucher

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12.The account that records expenses, gains and losses is:

1. Personal account
2. Real account
3. Nominal account
4. None of the above

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13.Real account records:

1. Dealings with creditors or debtors
2. Dealings in commodities
3. Gains and losses
4. All of the above

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14.In Journal, the business transaction is recorded:

1. Same day
2. Next day
3. Once in a week
4. Once in a month

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15.The process of entering all transactions from the Journal to Ledger is called:

1. Posting
2. Entry
3. Accounting
4. None of the above

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16.The following is a statement showing the financial status of the comapany at:

1. Trading account
2. Profit & Loss statement
3. Balance Sheet
4. Cash Book

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17.The following is a statement of revenues and expenses for a specific period of time:

1. Trading account
2. Trial Balance
3. Profit & Loss statements
4. Balance Sheet

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This set contains MCQs on Accountancy, MCQs on Accounting Equation, MCQs on Cash Book and MCQs on Ledger Accounts. Check these MCQs on Accountancy to check and enhance your level of preparation.

MCQs On Accounting Equation | MCQs On Cash Book | MCQs On Ledger Accounts

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Which of the following statements is incorrect?

1. Liabilities + Assets = Capital
2. Assets – Liabilities = Capital
3. Liabilities + Capital = Assets
4. Assets – Capital = Liabilities

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On January 1st, 2009 an entity’s balance sheet showed total assets of Rs. 750 and liabilities of Rs. 250. Owners’ equity at January 1st was?

1. Rs. 750
2. Rs. 1,000
3. Rs. 500
4. Rs. 250

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If the assets of a business are Rs. 100,000 and equity is Rs. 20,000, the value of liability will be?

1. Rs. 100,000
2. Rs. 80,000
3. Rs. 120,000
4. Rs. 20000

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Find out the missing value liabilities in an accounting equation with the help of given data?

Furniture	Rs 90000
Cash	Rs 100000
Debtors	Rs 10000
Other Assets	Rs 1000
Owner\’s equity	Rs 90000

1. Rs. 201,000 liabilities
2. Rs. 111, 000 liabilities
3. Rs. 290, 000 liabilities
4. Rs. 291, 000 liabilities

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The accounting equation should remain in balance because every transaction affects how many accounts?

1. Only one
2. Only two
3. Two or more
4. All of the given options

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Which of the following is not a correct form of the Accounting Equation?

1. Assets = Claims
2. Assets = Liabilities + Owner Equity
3. Assets – Liabilities = Owner’s Equity
4. Assets + Owner’s Equity = Liabilities

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Consider the following data:

Particulars	Rs
Assets	820000
Owners Equity	380000
Liabilities	?

1. Rs. 49,000
2. Rs. 55,000
3. Rs. 440,000
4. Rs. 198,000

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Find out value of account receivable from following Cash Rs. 48,000 account payable Rs. 33,000 office equipment Rs. 21,000 owner equity Rs. 77,000?

1. Rs. 21,000
2. Rs. 41,000
3. Rs. 15,000
4. Rs. 110,000

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During a reporting period, a company’s assets increase by Rs. 80,000,000. Liabilities decrease by Rs. 20,000,000. Equity must therefore?

1. Decrease by Rs. 100,000,000
2. Increase by Rs. 100,000,000
3. Decrease by Rs. 60,00,000
4. Increase by Rs. 60,000,000

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Which one of the following equations correctly expresses the relationship between assets (A), liabilities (L), revenues (R), expenses (E) and capital (C)?

1. A = L + R + E + C
2. A = C + L + (R-E)
3. A = C – (R – E) + L
4. A = (L – C) + (R – E)

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The liabilities of a business are Rs. 30,000; the capital of the proprietor is Rs. 70,000. The total assets are?

1. Rs.70,000
2. Rs. 30,000
3. Rs.40,000
4. None

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Which of the following account is affected from the drawings of cash in sole-proprietorship business?

1. Shareholder account
2. Capital account
3. Liability account
4. Expense account

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Mr. “A” borrowed money from bank; this transaction involves which one of the following accounts?

1. Cash & Bank Loan
2. Bank & Debtors
3. Drawing & Cash
4. Cash & Bank

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Mr. ‘A’ provided the following information from his books of accounts at the end of the month. What is the amount of his capital?

Particulars	Rupees
Cash	2000
Accounts Receivable	500
Accounts Payable	200
Bank Loans	1000

1. Rs. 200
2. Rs. 900
3. Rs. 1,200
4. Rs. 1,300

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Which of the following accounts will be used in equation, if the goods are sold on credit to Mr. Mahmood?

1. Cash account and Owner’s equity
2. Account Receivable and Owner’s equity
3. Cash and Account Receivable
4. Account Payable and Owner’s Equity

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This set contains many MCQs on accountancy. Solve these MCQs on accountancy to check and enhance your level of preparation for competitive exams.

1. Discount allowed is a kind of deduction from

1. Account Payable
2. Account Receivable
3. Cash account
4. Discount account

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2. The other name of Journal is:

1. Ledger
2. T account
3. Day Book
4. Cash Book

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3. The Journal entry in which two or more account is debited or credited is referred to as:

1. Journal entry
2. Multi entry
3. Additional entry
4. Compound entry

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4. Goods returned by customer should be debited to which of the following accounts?

1. Sales income account
2. Sales account
3. Return inward account
4. Expenses account

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5. Discount allowed is:

1. Expense of business
2. Income of business
3. Loss of business
4. Abnormal loss of business

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6. Which of the following will be debited if a business purchases goods on credit?

1. Cash
2. Debtor
3. Creditor
4. Purchases

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7. Which of the following accounts will be debited if the business’s owner withdraws cash from business for personal use?

1. Drawings
2. Cash
3. Business
4. Stock

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8. Journals are also referred to as:

1. Book of entries
2. Book of original entries
3. T account
4. Book of economic events

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9. Accounting furnishes data on:

1. Income and cost for the managers
2. Financial conditions of the institutions
3. Company’s tax liability for a particular year
4. All of the above

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10. The long term assets that have no physical existence but, possess a value is known as:

1. Current assets
2. Fixed assets
3. Intangible assets
4. Investments

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11. The assets that can be easily converted into cash within a short period (i.e., 1 year or less is known as) :

1. Current assets
2. Fixed assets
3. Intangible assets
4. Investments

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12. Copyrights, Patents and Trademarks are:

1. Current assets
2. Fixed assets
3. Intangible assets
4. Investments

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13. The debts which are to be repaid within a short period (a year or less) are referred to as:

1. Current Liabilities
2. Fixed Liabilities
3. Contingent Liabilities
4. All of the above

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14. In journal, the word \’JOUR\’ is derived from:

1. Latin word
2. French word
3. German word
4. English word

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15. Salary outstanding is:

1. Personal account
2. Nominal account
3. Real account
4. Asset account

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16. The book ”Samma De Arithmetica” was written in the year:

1. 1494
2. 1454
3. 1545
4. 1900

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MCQs On Accountancy

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The main purpose of preparing a bank reconciliation statement
is?

1. To know the bank balance
2. To know the balance of bank statement
3. To correct the cash book
4. To identify causes of difference between cash book and bank statement.

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Bank reconciliation statement is?

1. Part of bank statement
2. Part of the cash book
3. A separate statement
4. a sub-division of journal

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Uncollected checks are also known as?

1. Outstanding checks
2. Uncleared checks
3. Outstation checks
4. Both b & c

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Favorable balance means?

1. Credit balance in the cash book
2. Credit balance in Bank statement
3. Debit balance in cash book
4. Debit balance in petty cash book

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Unfavorable balance means?

1. Credit balance in the cash book
2. Credit balance in Bank statement
3. Debit balance in cash book
4. Debit balance in petty cash book

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When check is not paid by the bank, it is called?

1. Honored
2. Endorsed
3. Dishonored
4. Both 1 and 2

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A bank reconciliation statement is prepared by?

1. Banker
2. Accountant of the business
3. Auditors
4. Registrar

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Bank reconciliation is not a?

1. Reconcile records
2. Memorandum statement
3. Ledger account
4. Procedure to provide cash book adjustments

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The balance on the debit side of the bank column of cash book indicates?

1. The total amount has drawn from the bank
2. Cash at bank
3. The total amount overdraft in the bank
4. None of above

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Bank statement also called?

1. Pass book
2. Cash book
3. Credit book
4. Debit book

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When bank statement shows a debit balance, it means?

1. Overdraft balance as per cash book
2. Unfavorable balance as per cash book
3. Unfavorable balance as per bank book
4. None of the above

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The check which is deposited into bank but not cleared at the:

1. Uncredited check
2. Unpresented check
3. Omitted check
4. Dishonored check

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When dealing with Bank reconciliation statement while using missing method the credit side of cash book corresponds to?

1. Debit side of cash book
2. Credit side of Bank statement
3. Debit side of Bank statement
4. None of them

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In cash book bank charges recorded on?

1. Credit side
2. Debit side
3. both a & b
4. None of them

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Credit balance as per pass book is?

1. Unfavorable balance
2. Favorable balance
3. Both a & b
4. None

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When cash is deposited into bank then the following account would be debited in the company accounts?

1. Cash account
2. Overdraft account
3. Bank account
4. None

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Which of the following would not affect bank reconciliation?

1. Dishonored cheque
2. Discount received
3. Bank interest
4. Check not presented

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An amount of Rs. 1,000 is debited twice in the bank statement. When overdraft as per the cash book is the starting point?

1. Rs. 1,000 will be deducted
2. Rs. 1,000 will be added
3. Rs. 2,000 will be deducted
4. Rs. 2,000 will be added

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Which one of the following is not missing of cash book?

1. Mistakes in cash book
2. Outstation check
3. Bank charges debited in bank statement?
4. Interest credited in bank statement

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If any amount is directly deposited into the bank then?

1. Cash book will show less balance & bank book will show more
2. Cash book will show more balance & bank book will show less
3. Cash book will show double balance
4. Bank book will show double balance

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This set contains best MCQs on Accountancy for competitive exams. Solve these important MCQs on accountancy to check and enhance your level of preparation for competitive exams.

Best MCQs On Accountancy

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1. Ledger is a principal book in which?

1. Only real account are kept
2. Only personal accounts are kept
3. All accounts are kept
4. Only nominal accounts are kept

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2. The left hand side of account is referred to as?

1. The Balance
2. A Debit
3. A Credit
4. A footing

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3. Excess of Debit side over Credit side is called?

1. Debit Balance
2. Credit Balance
3. Liability Accounts
4. All of before

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4. Which item will appear on the credit side of ledger account?

1. Cash received
2. Purchases
3. Discount received
4. Rent Expenses

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5. The process of transferring the debit and credit items from a journal to their respective account in the ledger is termed as?

1. Balancing
2. Posting
3. Arithmetic
4. Entry

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6. Ledger is a book of?

1. Original entry
2. Final entry
3. Secondary entry
4. All cash transactions

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7. The account is a device used by the accountant to record?

1. Increase
2. Decrease
3. Increase & Decrease
4. None of them

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8. The balance of cash account indicates?

1. Net cash on hand
2. Net loss for the period
3. Net income for the period
4. Net worth of the business

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9. Which of the following item is not included in the Cash account?

1. Purchases of Rs. 10,000
2. Sales of Rs.5,000
3. Received cash for Salman Rs. 2,000
4. Credit sales of Rs. 22,000

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10. Which accounts belong in the accounts payable ledger?

1. Customer Accounts
2. Vendor Accounts
3. Sales Accounts
4. None

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11. An account is said to have a debit balance if?

1. The amount of debit exceeds the amount of the credits
2. There are more entries on the debit side than on the credit side
3. The last entry of the accounting period was posted on the debit side
4. None of above

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12. Book of account where transaction related to a particular person or thing are recorded?

1. General Journal
2. Trial balance
3. General Ledger
4. Worksheet

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13. When a Liability is reduced or decreased, it is recorded on the?

1. Right or debit side of the account
2. Left or debit side of the account
3. Left or credit side of the account
4. Right or credit side of the account

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14. General Ledger is also known as?

1. Book of First entry
2. T Account
3. Source document
4. Voucher

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15. The records that are kept for the individual asset, liability, equity, revenue, expense, and drawing components are known?

1. Journals
2. Vouchers
3. Accounts
4. Statements

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16. The respective normal account balances of Sales, Sales Returns and Allowances, and Sales Discounts are?

1. Credit, Credit, Credit
2. Debit, credit, debit
3. Credit, Debit, Debit
4. Credit, Debit, Credit

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This set contains best MCQs on accountancy. Solve these best MCQs on accountancy to check and enhance your level of preparation for competitive exams.

MCQs on Accountancy For Competitive Exams

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Which of the following item is not included in the Cash Book?

1. Purchases of Rs. 10,000
2. Sales of Rs.5,000
3. Received cash for Salman Rs. 2,000
4. Credit sales of Rs. 22,000

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Which of the following items is not considered as cash or cash?

1. Cash on hand
2. Bank borrowings
3. Demand deposits
4. Investments with a maturity of two months from the date of acquisition

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The Cash of a business would change as a result of?

1. A supplier being paid by check and deposited
2. Raw materials being purchased on credit
3. Non-current assets being purchased on credit
4. Wages being paid in cash

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Contra entry is recorded in?

1. Double column cash book
2. Single column cash book
3. Three column cash book
4. 1 and 3

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A book in which cash balance and bank balance are simultaneously maintained is known as?

1. Simple cash book
2. Single column cash book
3. Double column cash book
4. None-of these

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If a business shows a debit balance in its own record of its bank balance, this indicates?

1. The business has a bank overdraft
2. The business is a debtor in the books of bank
3. The business has money in the bank
4. The ledger entry must be wrong

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The unfavorable balance of cash in cash book is?

1. An expense
2. Liability
3. A gain
4. An Asset

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When a company received cheque from customer. The effect of the transaction is to?

1. Increase assets and decrease assets
2. Increase assets and liabilities
3. Decrease assets and liabilities
4. Increase assets and stockholder’s equity

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Cash book involves the?

1. For payment transactions
2. Both payment and receipt transactions
3. For receipt transactions
4. None

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The transaction will be treated as a contra entry when?

1. Cash withdrew from bank for domestic use
2. Check received from customer and deposited
3. Cash drew from bank for office use
4. 1 and 3 only

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When a cheque is received from a customer and it is deposited into the bank for collection but ultimately returned dishonored, the customer account will be?

1. Debited
2. Credited
3. Becomes a liability
4. None of the above

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If debit side of bank account is greater than credit side it represents?

1. Cash at Bank
2. Bank Loan
3. Bank Overdraft
4. None of them

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The payment to a creditor will?

1. Increase one asset and decrease another
2. Decrease an asset and decrease owner’s equity
3. Decrease an asset and decrease a liability
4. Increase an asset and increase a liability

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The T-account is used to summarize which of the following?

1. Increase and decrease to a single account in the accounting system
2. Debit and credit to a single account in the accounting system
3. Changes in specific account balances over a time period
4. All of the above describe how T-accounts are used by accountants

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Credit means?

1. Entries on the right hand side
2. A decrease in liabilities
3. An increase in expenses
4. An increase in assets

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This set contains many important MCQs on accountancy for competitive exams like JKSSB etc. Solve these important MCQs on accountancy to check and enhance your level of preparation for competitive exams.

Best MCQs On Accountancy For JKSSB

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The favorable balance of profit and loss account should be?

1. Added in liabilities
2. Subtracted from current assets
3. Subtracted from liabilities
4. Added in capital

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Which of the following is not a satisfactory statement of the balance sheet equation?

1. Assets = liabilities + owner’s equity
2. Assets – liabilities = owner’s equity
3. Assets = liabilities – owner’s equity
4. Assets – owner’s equity = liabilities

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Revenue of the business includes?

1. Cash sales only
2. Credit sales only
3. Credit purchases only
4. Both cash sales and credit sales

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Which one of the following represents the expanded basic accounting equation?

1. Assets = Liabilities + Common Shares + Dividends – Revenue – Expenses
2. Assets + Dividends – Expenses = Liabilities + Common Shares + Revenues
3. Assets – Liabilities – Dividends = Common Shares + Revenues – Expenses
4. Assets = Revenues + Expenses – Liabilities

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Which of the following transactions would have no impact on stockholders’ equity?

1. Purchase of land on credit
2. Dividends to stockholders
3. Net loss
4. Investnent in cash by stock holders

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The expression of the equality of an entity’s assets with the claims against them is referred to as the:

1. Accounting equation
2. Accounting transaction
3. Bookkeeping
4. None of these

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When any entry is made on the both sides of cash book is called as?

1. General entry
2. Double entry
3. Compound entry
4. Contra entry

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Which one of the following affects cash book during a period?

1. Recording depreciation expense
2. Declaration of a cash dividend
3. Write-off of an uncollectible account receivable
4. Payment of an accounts payable

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How many kinds of Cash book are there?

1. 2
2. 3
3. 4
4. none

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A company issues cheque to pay account payable. The effect of the transaction is to?

1. Increase assets and liabilities
2. Increase assets and decrease liabilities
3. Decrease assets and liabilities
4. Increase assets and stockholder\’s equity

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A check received and paid into the bank on the same date is recorded
in the?

1. Bank column of the cash book
2. Cash column of the cash book
3. Both the cash and bank column of the cash book
4. None of above

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The transaction will be treated as a contra entry when?

1. Cash withdrew from bank for personal use
2. Check received from customer and deposited
3. Cash drew from bank for office use
4. Non of Above

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Which one of the following is not correct for cash book?

1. It is a dual book
2. It is journalized ledger
3. It records liabilities
4. Both b and c

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Over drawn balance of cash book is recorded on?

1. If Dr or Cr balance not mentioned will be overdrawn balance
2. If mentioned O/D balance then will be debited on debit side of cash book
3. Is Credited if the balance is mentioned as an over drawn balance
4. None of Above

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A check received on 12th of December dated 25th December is considered as?

1. Bank
2. Cash
3. Liability
4. Revenue

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This set contains many important MCQs on Accountancy. These important MCQs On accountancy consist of MCQs On Trial Balance, MCQs On Trading Account and MCQs on profit and loss account. Solve these MCQs to check and enhance your level of preparation for competitive exams.

MCQs On Trial Balance | MCQs On Trading Account | MCQs On Profit and Loss Account

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Statements prepared to know profit or loss and financial position of the business are called:

1. Financial Statement
2. Bank Reconciliation Statement
3. Trial Balance
4. All of these

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Account which shows Gross Profit or Gross Loss of the business is called:

1. Profit and Loss Account
2. Balance Sheet
3. Trial Balance
4. Trading Account

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Trading Account is prepared to know:

1. Net Profit or Loss of business
2. Gross Profit or Loss of business
3. Both (1) or (2)
4. Financial Position of business

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On debit side of trading Account we record:

1. Direct Expense
2. Indirect Expense
3. Both of these
4. None of these

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Closing stock is recorded in:

1. Profit and Loss Account
2. Trading Account and Balance Sheet
3. Balance Sheet only
4. None of these

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Profit and Loss Account shows the:

1. Total Capital Employed
2. Profit and Loss through sale of assets
3. Profit earned by business
4. None of these

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Operating expenses are recorded in:

1. Trading Account
2. Profit and Loss Account
3. Balance Sheet
4. All of these

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Expenses relating to sale of goods are shown in:

1. Proft and Loss Account
2. Trading Account
3. Trading and Profit & Loss A/c
4. Balance Sheet

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Profit and Loss Account is prepared:

1. At a particular point of time
2. On fixed date
3. For a certain period
4. All of these

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Carriage Outwards is an example of:

1. Direct Expenses
2. Indirect Expenses
3. Indirect Income
4. Direct Income

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Which are indirect expense of the followings?

1. Salaries Expenses
2. Insurance Expenses
3. Rent Income
4. All of these

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Income earned from other than routine activities is called:

1. General Income
2. Direct Income
3. Indirect Income
4. None of these

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Discount received is an example of:

1. Indirect income
2. Direct Income
3. Net Income
4. General Income

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Which are indirect incomes of the followings?

1. Commission received
2. interest on investment
3. Dividend received
4. All of these

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On credit side of Profit and Loss Account we record:

1. Direct Expenses
2. Direct Income
3. Indirect Expenses
4. Indirect Income

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These were some important MCQs on Accountancy and comprised of MCQs On Trial Balance, MCQs On Trading Account and MCQs on profit and loss account. We are sure that you will find these MCQs on Accountancy useful and hope that you will share them with your friends.

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