Accounting MCQ Questions and Answers for Practice

1. Budgeting is difficult to apply in the following cases

1. Products subjected to rapid changes
2. Job order manufacturing
3. Uncertain market conditions
4. All of the above

2. The following is (are) the type(s) of Journal

1. Purchase journal
2. Sales journal
3. Cash journal
4. All of the above

3. Current ratio =

1. Quick assets / Current liabilities
2. Current assets / Current liabilities
3. Debt. / Equity
4. Current assets / Equity

4. A Master Budget consists of

1. Sales budget
2. Production budget
3. Material budget
4. All of the above

5. In journal, the business transaction is recorded

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

6. The following is not a type of liability

1. Short term
2. Current
3. Fixed
4. Contingent

7. Which of the following would not be found on a standardized balance sheet?

1. Tangible Assets
2. Amounts written off Investments
3. Debtors
4. Share Premium Account

8. The following is a statement showing the financial status of the company at any given time

1. Trading account
2. Profit and Loss statements
3. Balance sheet
4. Cash book

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

1. Trading account
2. Trial balance
3. Profit and loss statements
4. Balance sheet

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

11. Which of the following would not be found on a standardized income statement?

1. Turnover
2. Other Operating Income
3. Value of Intangible Non-current Assets
4. Distribution Costs

12. Which of the following is not an expense?

1. Wages and Salaries
2. Dividend Payments
3. Stationery
4. Materials

13. Which of the following is not a debit balance?

1. Wages and Salaries
2. Cost of Buildings
3. Taxation Paid
4. Capital Account

14. In which year was the Limited Liability Act passed?

1. 1494
2. 1855
3. 1844
4. 1948

15. Return on Investment Ratio (ROI) =

1. (Gross profit / Net sales) x 100
2. (Gross profit x Sales / Fixed assets) x 100
3. (Net profit / Sales) x 100
4. (Net profit / Total assets) x 100