Accounting Equation MCQ

Accounting Equation MCQ

  • Sharad Jaiswal
  • 17th Jun, 2021

We have listed below the best Accounting Equation MCQ Questions for your basic knowledge of Accounting Equation. This Accounting Equation MCQ Quiz contains 25+ best Accounting Equation Multiple Choice Questions. You have to select the right answer to every question. 

Latest Interview Questions

img
API Testing Interview Questions 08th Aug, 2022
img
Celery Interview Questions 25th Nov, 2021
img
Solaris Interview Questions 24th Feb, 2021
img
Telematics Interview Questions 05th Mar, 2021
img
UFT Interview Questions 08th Aug, 2022
img
Terraform Interview Questions 23rd Nov, 2021

Practice Best Accounting Equation MCQ Questions:

1) If the assets of a business are Rs . 100,000 and equity is Rs. 20,000, the value of liability will be

  • A. Rs 20,000
  • B.Rs 80,000
  • C.Rs 100,000
  • D.Rs 120,000

2) Assets minus liabilities equals to

  • A. Capital
  • B.Goodwill
  • C.Working capital
  • D.Net income

3) On January 1st, 2009 an entity’s balance sheet showed total assets of rs. 750 and liabilities of rs. 250. owners’ equity at january 1st was?

  • A. Rs. 250
  • B.Rs. 500
  • C.Rs. 750
  • D.Rs. 1,000

4) Copyrights, Patents and Trademarks are_____

  • A. Fixed assets
  • B.Current assets
  • C.Investments
  • D.Intangible assets

5) Which of these is not included as a separate item in the basic accounting equation?

  • A. Revenues
  • B.Liability
  • C.Stockholder's Equity
  • D.Assets

6) Profit and loss is calculated at the stage of

  • A. Posting
  • B.Recording
  • C.Classifying
  • D.Summarising

7) Accounting principles can be classified into______

  • A. Two Kinds
  • B.Three Kinds
  • C.Four Kinds
  • D.Five Kinds

8) If assets are Rs.8000 and capital is Rs.6000 liabilities will be

  • A. 2000
  • B.4000
  • C.6000
  • D.8000

9) Fixed assets are held by business for______

  • A. Generating revenue
  • B.Resale
  • C.Converting into cash
  • D.None of the above

10) Financial statement displays the revenues and expenses of a company for a period of time_______

  • A. Balance sheet
  • B.Income Statement
  • C.Cash flow statement
  • D.Stockholder"s Equity

11) Purchase goods on credit and for cash will affect______

  • A. Cash and Creditor
  • B.Cash Good and Creditor
  • C.Cash and Good
  • D.Cash Creditor and Owner's Equity

12) Current Ratio=

  • A. Debt/Equity
  • B.Current assets/Equity
  • C.Current assets/Current liabilities
  • D.Quick assets/Current liabilities

13) Accounting principles are generally based on

  • A. Practicability
  • B.Subjectivity
  • C.Conveniences in recordings
  • D.None of the above

14) Purchase of fixed assets for cash would

  • A. Reduce current and fixed assets
  • B.Keep current and fixed assets unchanged.
  • C.Reduce current asset and increase fixed assets.
  • D.Reduce current assets and current liabilities

15) Which of the following options is not recorded in the balance sheet?

  • A. Cash
  • B.Goodwill
  • C.Building
  • D.Rent expenses

16) P&L statement is also known as:

  • A. Statement of earnings
  • B.Statement of operations
  • C.Statement of income
  • D.None of the above

17) Trade payable are recorded in______.

  • A. Asset side of B&S
  • B.Liability side of B&S
  • C.P&L account
  • D.None of the above

18) Marginal cost is concern are:

  • A. Fixed cost
  • B.Variable cost
  • C.Semi Variable cost
  • D.All of the above

19) Net asset value is also called as_______

  • A. current assets
  • B.current assets minus inventories
  • C.current assets minus current liabilities
  • D.total assets minus fixed assets

20) What is an asset ?

  • A. Use of fund
  • B.Source of fund
  • C.Inflow of funds
  • D.None of the above

21) Petty Cash fund is supposed to be replenished

  • A. Every Year
  • B.Half Year
  • C.Quarterly
  • D.Every account period

22) Debenture is also name as______

  • A. Share
  • B.Bond
  • C.Equity
  • D.Reserve

23) Accounting equation shows on a Company?

  • A. Cost Sheet
  • B.Balance Sheet
  • C.Trial Balance
  • D.Final Account

24) Base of Accounting equation is______

  • A. Single Entry System
  • B.Double Entry System
  • C.Dual asept Concept
  • D.Costing Measurement System

25) Who was the Father of Double Entry System?

  • A. Luca Pascoli
  • B.Eugeue Fama
  • C.Jeromee Lee
  • D.Pineer Peggler

Leave A Comment :

Valid name is required.

Valid name is required.

Valid email id is required.

Latest Posts

img
Login With Google using PHP 18th Nov, 2019
img
Working with expressions In Angular JS? 01st Nov, 2019
img
What is AngularJS? Why it is Used. 16th Nov, 2019

Latest MCQ Questions

img
Arduino MCQ Questions 08th Dec, 2021
img
3D Printing MCQ 23rd Nov, 2021
img
Bioinformatics MCQ Questions 12th Mar, 2022
img
Business Intelligence MCQ 15th Apr, 2022
img
Salesforce MCQ 28th Feb, 2022
img
SAP ABAP MCQ 05th Mar, 2022

Related MCQ/Quiz

01st
Jul
Balance Sheet MCQ

Balance Sheet MCQ

01st
Dec
E-Commerce MCQ Questions

E-Commerce MCQ Questions

01st
Jul
Capital Market MCQ Questions

Capital Market MCQ Questions

01st
Jul
Indian Economy MCQ Questions

Indian Economy MCQ Questions

01st
Jul
Business Economics MCQ

Business Economics MCQ

01st
Nov
Marketing Mix MCQ

Marketing Mix MCQ