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: Bank reconciliation statement matches company records with
A) Sales register
B) Trial balance
C) Purchase ledger
D) Bank statement
✅ Correct Answer: D
Explanation: Bank reconciliation ensures that the cash book aligns with the bank's records.
Q: Goods withdrawn by owner for personal use are treated as
A) Drawings
B) Asset
C) Income
D) Reserve
✅ Correct Answer: A
Explanation: Drawings reduce the owner's equity and are not considered business expenses.
Q: Primary objective of financial accounting is to
A) Provide financial information
B) Reduce taxes
C) Conduct audits
D) Record employee data
✅ Correct Answer: A
Explanation: Financial accounting aims to report financial results to stakeholders.
Q: Indirect expenses appear on which financial statement
A) Trial balance
B) Cash flow statement
C) Balance sheet
D) Profit and loss account
✅ Correct Answer: D
Explanation: Indirect expenses affect the profit and loss account as operating costs.
Q: Loss due to theft is recorded under which head
A) Income
B) Asset
C) Expense
D) Liability
✅ Correct Answer: C
Explanation: Losses are treated as expenses and reduce net profit.