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: Ledger serves which function in accounting
A) Summarizing journal entries
B) Recording original entries
C) Approving transactions
D) Forecasting income
✅ Correct Answer: A
Explanation: Ledger compiles and summarizes data from journals.
Q: Capital introduced by an owner is categorized as
A) Asset
B) Revenue
C) Equity
D) Liability
✅ Correct Answer: C
Explanation: Owner’s capital is part of equity representing ownership interest.
Q: Salaries paid in advance are reported as
A) Income
B) Current asset
C) Capital
D) Current liability
✅ Correct Answer: B
Explanation: Advance salaries are prepaid expenses and are considered assets.
Q: Trial balance confirms which aspect of accounts
A) Debits equal credits
B) Profit margin
C) Budget accuracy
D) Compliance
✅ Correct Answer: A
Explanation: A trial balance checks that total debits equal total credits.
Q: Accrued income is shown as which type of item
A) Expense
B) Liability
C) Asset
D) Revenue
✅ Correct Answer: C
Explanation: Income earned but not received is considered a current asset.