Theory Base of Accounting MCQs : Here you will find MCQ Questions related to "Theory Base of Accounting" in Accountancy. These Theory Base of Accounting 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
The concept of __________ says that a business is a separate entity from its owners.
A. money measurement
B. business entity
C. going concern
D. accounting period
Question 2
Going concern concept says that a firm will take on its business for an unlimited period of time and would not be converted into cash at any pre-decided timeframe.
A. TRUE
B. FALSE
C. Can be true or false
D. Can not say
Question 3
How many basic Accounting Assumptions?
A. 1
B. 2
C. 3
D. 4
Question 4
According to ________ of accounting assumption, Revenue and expenses are recognised in the period in which they occur rather when they are received or paid.
A. Going Concern Assumption
B. Consistency Assumption
C. Both A and B
D. Accrual Basis Assumption
Question 5
__________ is the timeframe at the end of which, the financial statements of a business are prepared, to evaluate its profits and losses, and to learn the status of its assets and liabilities.
A. Cost Concept
B. Accounting period
C. Business Entity
D. Going Concern
Question 6
Generally the duration of an Accounting period is of?
A. 6 months
B. 3 months
C. 12 months
D. 9 months
Question 7
The sum of Liabilities and Capital is?
A. Expense
B. Income
C. Drawing
D. Assets
Question 8
In India, the accounting standard board was set up in the year?
A. 1976
B. 1977
C. 1978
D. 1979
Question 9
Profit is recognised when the sale of goods & services has been made.
A. Yes
B. No
C. Can be yes or no
D. Can not say
Question 10
The basic accounting postulates are denoted by?
A. Book keeping
B. Accounting standards
C. Concepts
D. None of the above