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: Final accounts are prepared to ascertain
A) Cash flow
B) Financial results
C) Tax amount
D) Receivables
✅ Correct Answer: B
Explanation: Final accounts reveal the profit or loss and the financial position.
Q: Capital contributed by partners is recorded in
A) Profit and loss account
B) Income account
C) Liability account
D) Partner’s capital account
✅ Correct Answer: D
Explanation: Contributions are credited to the respective partner’s capital accounts.
Q: Value of closing stock is determined by
A) Invoice price
B) Sales return
C) Cost or market price whichever is lower
D) Market price only
✅ Correct Answer: C
Explanation: Closing stock is valued conservatively using the lower of cost or market.
Q: Outstanding income is considered a
A) Expense
B) Equity
C) Current asset
D) Liability
✅ Correct Answer: C
Explanation: Income earned but not received is an asset until collected.
Q: Receipts and Payments account records
A) Only credit items
B) Only revenue items
C) Adjusted entries
D) All receipts and payments
✅ Correct Answer: D
Explanation: This account reflects all cash and bank transactions of a period.