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: Debit balance in trial balance indicates
A) Asset or expense
B) Profit
C) Reserve
D) Liability or income
✅ Correct Answer: A
Explanation: Debit balances usually represent assets or expenses.
Q: Petty cash book is used for recording
A) Fixed asset purchases
B) Capital contributions
C) Small day-to-day expenses
D) Bank transactions
✅ Correct Answer: C
Explanation: Petty cash covers minor daily expenses like postage or stationery.
Q: Fixed assets are held by business for
A) Donation
B) Resale
C) Production or services
D) Consumption
✅ Correct Answer: C
Explanation: Fixed assets are used to generate revenue, not for resale.
Q: Loss due to natural calamity is charged to
A) Capital account
B) Reserves
C) Suspense account
D) Profit and loss account
✅ Correct Answer: D
Explanation: Unexpected losses are reflected in the profit and loss account.
Q: Goodwill is recorded only when
A) Purchased
B) Internally generated
C) Sold to customer
D) Estimated
✅ Correct Answer: A
Explanation: Goodwill is recognized in accounts only when purchased.