Accounting MCQs
Accounting MCQs are designed to help students and professionals reinforce their knowledge in financial accounting, cost accounting, and managerial accounting. This section covers core topics such as journal entries, ledger posting, trial balance, financial statements, ratio analysis, depreciation, and accounting standards. Whether you're preparing for professional certifications like ACCA, CA, or CMA, or sitting for competitive exams such as PPSC, FPSC, NTS, and bank recruitment tests, these MCQs provide a solid foundation. They're also useful for B.Com, BBA, and MBA students looking to enhance their conceptual clarity and problem-solving abilities. With real-world scenarios and exam-oriented questions, these MCQs make accounting easier to understand and apply. Practice regularly to boost your analytical skills and exam performance.
Q: Revenue from selling goods is termed as
A) Deferred revenue
B) Recurring expense
C) Operating income
D) Capital income
✅ Correct Answer: C
Explanation: Revenue from normal business operations is called operating income.
Q: Real accounts are related to
A) Assets and properties
B) Expenses and losses
C) Creditors only
D) Incomes and gains
✅ Correct Answer: A
Explanation: Real accounts deal with tangible and intangible assets.
Q: Nominal accounts include items such as
A) Bank and cash
B) Equipment and land
C) Debtors and creditors
D) Income and expenses
✅ Correct Answer: D
Explanation: Nominal accounts include expenses, losses, income, and gains.
Q: Contra entries occur in
A) Purchase book
B) Journal proper
C) Sales book
D) Cash book
✅ Correct Answer: D
Explanation: Contra entries involve both cash and bank columns of the same cash book.
Q: Fixed deposits held in a bank are classified as
A) Fixed liabilities
B) Long-term investments
C) Reserves
D) Current assets
✅ Correct Answer: B
Explanation: Fixed deposits are long-term investments shown under non-current assets.
Q: Assets held for resale are treated as
A) Deferred income
B) Current assets
C) Revenue
D) Fixed assets
✅ Correct Answer: B
Explanation: Goods meant for sale are recorded as current assets.
Q: Salaries outstanding are part of
A) Revenue
B) Expenses
C) Drawings
D) Liabilities
✅ Correct Answer: D
Explanation: Salaries owed at year-end are liabilities of the business.
Q: Interest on capital is recorded as
A) Expense in capital account
B) Personal account
C) Profit distribution
D) Fixed liability
✅ Correct Answer: C
Explanation: Interest on capital is an appropriation of profit and part of distribution to owners.
Q: Trade receivables comprise
A) Debtors and bills receivable
B) Bank deposits
C) Only suppliers
D) Creditors and debtors
✅ Correct Answer: A
Explanation: Trade receivables include amounts due from customers and bills receivable.
Q: Business assuming indefinite life is part of which concept
A) Money measurement
B) Cost concept
C) Going concern
D) Matching
✅ Correct Answer: C
Explanation: Going concern assumes the business will operate indefinitely.