Accounting MCQs
Accounting MCQs help students and professionals master financial, cost, and managerial accounting, covering topics like journal entries, financial statements, and ratios—ideal for certifications, competitive exams, and business studies to boost skills and exam performance.
Q: Revenue is recognized when it is earned, regardless of cash receipt
A) When earned
B) When collected
C) When invoiced
D) When received in bank
✅ Correct Answer: A
Explanation: Revenue is recorded once it is earned, even if payment has not yet been received.
Q: Double-entry bookkeeping affects how many accounts per transaction
A) Multiple
B) One
C) Two
D) Three
✅ Correct Answer: C
Explanation: Each financial transaction impacts at least two accounts, maintaining balance.
Q: Balance sheet reflects the financial position on a particular date
A) Quarterly
B) Specific date
C) Monthly
D) Fiscal year
✅ Correct Answer: B
Explanation: The balance sheet shows the assets, liabilities, and equity as of a specific date.
Q: Depreciation accounts for which financial effect
A) Decrease in asset value
B) Revenue deduction
C) Increase in liability
D) Cash loss
✅ Correct Answer: A
Explanation: Depreciation reduces the book value of a tangible asset over time.
Q: Outstanding expenses are classified under which section in accounts
A) Income
B) Equity
C) Assets
D) Liabilities
✅ Correct Answer: D
Explanation: These are unpaid obligations and thus fall under current liabilities.