Financial Accounting MCQs. Account related Most important Questions and answers PDF. Easy/Basic to advance level Objective Multiple choice MCQ question answer for competitive exams & Interview. Helpful for EPFO, Online Test, PAF, CUET, PPSC, B Com, Banking, Class 11, Class 12, Finance, Aptitude test, ITI, BBA, MBA, SSC, UPSC, BANK PO etc.
1. Accounting is the_______ of monetary transactions.
2. Accounting is concerned with transactions involving________.
(c) movement of humans
3. Accounting transactions relate to_______.
4. Form used to record accounting transactions contains _______columns.
5. First 4 columns of account sheet are used for recording ______.
6. Columns 5 to 8 of account sheet are used for recording_______ .
7. First column of debit/ credit form is used to record______ of transaction.
(c) Journal Folio
8. Second column of debit/ credit transaction is used to record _____of transaction.
(c) Journal Folio
9. Third column of debit/ credit form is used to record_____ of transaction.
(c) Journal Folio
10. Fourth column of debit/ credit form is used to record______ of transaction.
(c) Journal Folio
11. The method of recording debit and credit sides separated by a line is nicknamed _________ accounting.
12. Accounting system which considers assets, liabilities, revenue and expense is called______ method of accounting.
13. Accounting system which considers personal account, real account and nominal account is called _______ method of accounting.
14. Recording of debits and credits of individuals, bank accounts or other business sources is called ________ account.
15. Recording of debits and credits related to movable assets, immovable assets, inventory (stock needed for production) is called _______account.
16. Recording of debits and credits related to income, expense, Inflow of money and outflow of money is called _______ account.
17. _______ concept in accounting considers the business and its owner are different entities.
(a) Business entity
(b) Money measurement
(c) Going concern
18 . ___concept in accounting considers that only transactions involving money should be recorded.
(a) Business entity
(b) Money measurement
(c) Going concern
19. ______ concept in accounting considers that the business is a perpetual entity.
(a) Business entity
(b) Money measurement
(c) Going concern
20. ______concept in accounting considers that each debit has a corresponding credit.
(a) Business entity
(b) Money measurement
(c) Going concern
21. ______concept in accounting considers that only the actual cost of transaction should be recorded (not the market value of the transaction).
(b) Accounting period
(c) Matching cost
22._______ concept in accounting considers that cost of manufacture should be matched against the proceeds of sales.
(b) Accounting period
(c) Matching cost
23. _______ concept in accounting considers that an account should be closed on a periodic basis and reopened .
(b) Accounting period
(c) Matching cost
24. ______ concept in accounting considers that revenue is recorded on the date of transaction itself but expenditure is recorded only on the date of outlow of money (not the date of transaction, like encashing a cheque).
(b) Accounting period
(c) Matching cost
25. ______ concept in accounting considers that each transaction should be supported by evidence.
(a) Objective evidence
(b) Accounting period
(c) Matching cost
26. _______ account debits the receiver and credits the giver.
27. ______account debits the incoming asset and credits the outgoing asset.
28. ______ account debits expense and credits the income.
29. _____ denotes increase in money.
(a) Accrual basis
30. _____ considers incoming money to be instantly available and reduction of cash to occur only on the date of actual outflow of money (instead of the date of transaction).
(a) Accrual basis
31. ______ denotes movable or immovable property and inventory.
(a) Accrual basis
32. ______ considers that each debit has a corresponding credit.
(a) Double entry accounting
(c) Income or revenue
33. The evidence/ proof of a financial transaction is called _______.
34. _______ is a format for recording financial transactions.
35. Voucher has _____ sides.
36. The left side of a voucher is meant for _______ entries.
37. The right side of a voucher is meant for_______ entries.
38. ______ voucher changes inventory position.
39. ______ voucher changes monetary position.
40. ______ voucher transfers money from one deposit/loan account to another.