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: Carriage inward is considered as part of
A) Indirect income
B) Fixed asset
C) Operating income
D) Direct expense
✅ Correct Answer: D
Explanation: Carriage inward is a direct expense associated with bringing goods into inventory.
Q: Sundry debtors represent the amount
A) Receivable from customers
B) Owed by suppliers
C) Payable to customers
D) Collected from banks
✅ Correct Answer: A
Explanation: Debtors are individuals or entities that owe money to the business.
Q: Provision for doubtful debts is created to cover
A) Future profits
B) Loan repayments
C) Capital loss
D) Possible bad debts
✅ Correct Answer: D
Explanation: The provision accounts for expected non-recoverable customer debts.
Q: Trade discount is shown in which book
A) Profit and loss
B) Not recorded
C) Balance sheet
D) Ledger
✅ Correct Answer: B
Explanation: Trade discounts are not recorded in books as they reduce the list price before entry.
Q: Goods purchased for cash are entered in
A) Purchase return book
B) Sales book
C) Journal proper
D) Cash book
✅ Correct Answer: D
Explanation: Cash purchases are directly recorded in the cash book.