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: Interest on loan taken is shown as
A) Liability
B) Expense
C) Asset
D) Income
✅ Correct Answer: B
Explanation: Interest paid on loans is treated as an expense in financial accounts.
Q: Short-term loans are reflected under
A) Long-term liability
B) Current liability
C) Capital
D) Reserve
✅ Correct Answer: B
Explanation: These loans are due within a year and are current liabilities.
Q: Sales return affects which account
A) Sales account
B) Purchase account
C) Profit and loss appropriation
D) Asset account
✅ Correct Answer: A
Explanation: Returned sales reduce the total revenue and impact the sales account.
Q: Debit note is issued for
A) Credit purchase
B) Sales return
C) Purchase return
D) Cash receipt
✅ Correct Answer: C
Explanation: Debit notes are issued when returning goods to suppliers.
Q: Bank overdraft appears on which side of the balance sheet
A) Asset side
B) Debit side
C) Capital side
D) Liability side
✅ Correct Answer: D
Explanation: Overdrafts represent money owed to banks and are shown under liabilities.