Accounting MCQ

Below Accounting quiz are Multiple Choice Questions (MCQs) type Quiz. These Accounting MCQ Questions helps you to refresh your Accounting, you can see the correct option by clicking on it. .
  • 1. Liabilities often have the word __________ in their account title.

    • Assets
    • Payable
    • Paid
    • Equity
  • 2. When cash is received, the account Cash will be

    • Debited
    • Credited
  • 3. Assets taken out of a business for the owner's personal use

    • capital
    • withdrawals
    • equities
    • revenue
  • 4. What will usually cause an asset account to increase?

    • Debit
    • Credit
  • 5. Entries to revenues accounts such as Service Revenues are usually

    • Debits
    • Credits
  • 6. Switching accounting principles every year would violate the

    • money measurement principle
    • consistency principle
  • 7. Entries to expenses such as Rent Expense are usually

    • Debits
    • Credits
  • 8. The business or economic entity concept is applicable to

    • sole proprietorship form of business
    • partnership form of business
    • corporate form of business
    • all of the above
  • 9. The accounting equation is

    • Assets = Liabilities + Owner's Equity
    • Assets = Liabilities - Owner's Equity
    • Assets - Owner's Equity + Liability
  • 10. Unfavourable balance means?

    • Credit balance in cash book
    • Credit balance in bank statement
    • Debit balance in cash book
    • Debit balance in petty cash book
  • 11. Favourable balance means?

    • Credit balance in the cash book
    • Credit balance in the bank statement
    • Debit balance in cash book
    • Both B & C
  • 12. Anything of value that is owned

    • account
    • asset
    • withdrawal
    • expense
  • 13. A decrease in owner's equity resulting from the operation of a business

    • account
    • capital
    • asset
    • expense
  • 14. Investment by owner

    • Dr. Cash Cr. Revenue
    • Dr. Owner's Capital Cr. Cash
    • Dr. Cash Cr. Accounts Receivable
    • Dr. Cash Cr. Owner's Capital
  • 15. To which account in the Balance Sheet is the net income or net loss transferred to at the end of the accounting period?

    • Retained Earnings
    • Cash
    • Accounts Receivable
    • Inventory