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Accountancy MCQ Questions And Answers

Accountancy MCQs : Here you will find MCQ Questions related to "Basics" of Accountancy. These basic MCQ Questions Will help you to improve your Accountancy knowledge and will prepare you for various Examinations like Competitive Exams, Placements, Interviews and other Entrance Exmaniations

Question 1

_____________ can be defined as a process of reporting, recording, interpreting and summarising economic data.

A. Finance
B. Transaction
C. Accounting
D. Balance

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Question 2

Which of the following refers to the size of activities and level of a business operation?

A. Events
B. Organization
C. Information
D. None of the above

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Question 3

The American Institute of Certified Public Accountants (AICPA) had defined accounting as the "art of recording, classifying, and summarising in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof".

C. Can be true or false
D. Can not say

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Question 4

The economic value of an item which is possessed by the enterprise is referred to as?

A. Liabilities
B. Owners Equity
C. Both A and B
D. Assets

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Question 5

____________ is that branch of accounting which is concerned with the process of ascertaining and controlling the cost of products or services.

A. Financial accounting
B. Cost Accounting
C. Management accounting
D. All of the above

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Question 6

The art of recording all business transactions in a systematic manner in a set of books is called?

A. Accounting
B. Ledger
C. Bookkeeping
D. None of the above

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Question 7

Which of the following are main objectives of accounting?

A. To maintain a systematic record of business transactions
B. To ascertain profit and loss
C. To determine the financial position
D. All of the above

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Question 8

Cash, goods or assets invested by the proprietor in the business for earning profit is called?

A. Profit
B. Capital
C. Fixed assets
D. Liability

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Question 9

The person, firm or institution who does not pay the price in cash for the goods purchased or the services received is called?

A. Creditor
B. Proprietor
C. Debtor
D. None of the above

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Question 10

Accountancy refers to systematic knowledge of the principles and the techniques which are applied in Accounting.

A. Yes
B. No
C. Can be yes or no
D. Can not say

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