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: Accounts payable belong to which class
A) Expenses
B) Income
C) Liabilities
D) Assets
✅ Correct Answer: C
Explanation: Amounts payable to creditors are liabilities of the business.
Q: Discount received is recorded as
A) Income
B) Asset
C) Expense
D) Liability
✅ Correct Answer: A
Explanation: Discounts received reduce expense and increase income.
Q: Bad debts recovered are shown as
A) Loss
B) Income
C) Expense
D) Asset
✅ Correct Answer: B
Explanation: Recoveries of previously written-off amounts are treated as income.
Q: Inventory is considered as part of
A) Fixed assets
B) Current assets
C) Liabilities
D) Equity
✅ Correct Answer: B
Explanation: Inventory is a current asset representing unsold goods.
Q: Freight paid on goods purchased is added to
A) Closing stock
B) Capital account
C) Revenue
D) Cost of goods purchased
✅ Correct Answer: D
Explanation: Freight is included in the purchase cost to arrive at total cost.