Accounting Quiz

Financial Accounting Multiple Choice Questions (MCQS) Page 3. The Following Financial Accounting Mcqs are Collected from different Past papers and from Accounting Mcqs Bank. These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for  Cost Accountant.  

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1.The process of recording is done A)  Two times a year B)  once a year C)  Frequently during the accounting period D)  At the end of a accounting period 2.General journal is a book of _______ entries A)  First B)  Original C)  Secondary D)  Generic 3. The process of recording transactions in different journals is called A)  Posting B)  Entry making C)  Adjusting D)  Journalizing 4. Every business transaction affects at least ________ accounts A)  One B)  Two C)  Three D)  Infinite 5. Discount allowed is a kind of deduction from A)  Account payable B)  Account receivable C)  Cash account D)  Discount account 6. The other name of journal is A)  Ledger B)  T account C)  Day book D)  Cash book 7. A journal entry in which two or more account is debited or credited is referred as A)  Journal entry B)  Multi entry C)  Additional entry D)  Compound entry 8. The term 2/10-n/30 implies that ______ % discount will be given if the payment is made within days or full amount is receivable within 30 days A)  2,10 B)  10,2 C)  10,30 D)  3,15 9. Goods returned by customer should be debited to which of the following accounts? A)  Sales income account B)  Sales account C)  Return inward account D)  Expenses account 10. Discount allowed is A)  Expense of business B)  Income of business C)  Loss of business D)  Abnormal loss of business 11. _________ is the evidence that a transaction took place A)  Source documents B)  Ledger C)  Bonds D)  Journals 12. Which of the following will be debited if a business purchases goods on credit? A)  Cash B)  Debtor C)  Creditor D)  Purchases 13. Which of the following accounts will be debited if the business's owner withdraws cash from business for his personal use? A)  Drawings B)  Cash C)  Business D)  Stock 14. Journals are also referred as A)  Book of entries B)  Book of original entries C)  T account D)  Books of economic event 15.The standard format of journal does not include which of the following? A)  Assets column B)  Date column C)  Description column D)  Amount column 16. In which of the following orders data is entered in journal? A)  Alphabetical order B)  Numeric order C)  Bullets order D)  Chronological order 17. Which of the following accounts will be credited if a company purchases building for cash? A)  Capital account B)  Fixed assets account C)  Building account D)  Cash account 18. Discount for quick repayment of debt is normally referred as A)  Trade discount B)  Prompt payment discount C)  Cash discount D)  Bulk discount 19. The first step in accounting process is A)  Recording the transaction B)  Identifying the transaction C)  Posting the transaction D)  Preparing the source documents 20. A chart of accounts generally start with which of the following types of accounts? A)  Assets accounts B)  liability accounts C)  Cash accounts D)  Revenue accounts ANSWER: 1 C 2 B 3 D 4 B 5 B 6 C 7 D 8 A 9 C 10 A 11 A 12 D 13 A 14 B 15 A 16 D 17 D 18 C 19 B 20 A.