Accounting MCQs with Answers

This is Accounting MCQs section with detailed explanations for preparation of screening tests, interviews for government jobs. In this section candidate will learn MCQs on variety of topics from the subject.

1. 1 A systematic way to maintain the books of accounts is called_________
   

   1. Accountancy

   2. Economics

   3. Book Keeping

   4. Auditing

   See Answer

   Added By: Ak Aamir

   Answer

   : Book Keeping

   Explanation

   :
   N/A

2. 2 An Art of reading, classifying & Summarizing of accounts in a systematic way is called__________
   

   1. Accounting

   2. Accountancy

   3. Auditing

   4. Book Keeping

   See Answer

   Added By: Ak Aamir

   Answer

   : Accounting

   Explanation

   :
   N/A

3. 3 The maintenance of accounts in a systematic way is called__________
   

   1. Accounting

   2. Reading

   3. Book Keeping

   4. Auditing

   See Answer

   Added By: Ak Aamir

   Answer

   : Book Keeping

   Explanation

   :
   N/A

4. 4 Goods Return by the customer are termed as :
   

   1. Purchase return

   2. Customer return

   3. Sales return

   4. Inventory return

   See Answer

   Added By: Ak Aamir

   Answer

   : Sales return

   Explanation

   :
   N/A

5. 5 Modern system of book keeping is called______________
   

   1. Double entry system

   2. American system

   3. Single entry system

   4. Italic system

   See Answer

   Added By: Ak Aamir

   Answer

   : Double entry system

   Explanation

   :
   N/A

6. 6 The person to whom goods are sold on credit is called___________
   

   1. Buyer

   2. Seller

   3. Debtor

   4. Creditor

   See Answer

   Added By: Ak Aamir

   Answer

   : Debtor

   Explanation

   :
   N/A

7. 7 Double entry means______________
   

   1. Entry in two sets of books

   2. Entry at two ends

   3. Entry at two dates

   4. Entry for two aspects of the transaction

   See Answer

   Added By: Ak Aamir

   Answer

   : Entry for two aspects of the transaction

   Explanation

   :
   N/A

8. 8 Discount received is a/an:
   

   1. Asset

   2. Expense

   3. Liability

   4. Revenue

   See Answer

   Added By: Ak Aamir

   Answer

   : Revenue

   Explanation

   :
   N/A

9. 9 Obligation of the Business are known as___________
   

   1. Liabilities

   2. Revenues

   3. Expenses

   4. Assets

   See Answer

   Added By: Ak Aamir

   Answer

   : Liabilities

   Explanation

   :
   N/A

10. 10 The amount invested by the proprietor to start the business is called:
    

    1. Capital

    2. Business

    3. Drawings

    4. All of them

    See Answer

    Added By: Ak Aamir

    Answer

    : Capital

    Explanation

    :
    N/A