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: Closing stock is adjusted in the final accounts through
A) Profit and loss only
B) Cash book
C) Trading and balance sheet
D) Ledger only
✅ Correct Answer: C
Explanation: Closing stock affects both the trading account and the balance sheet.
Q: Purchase return reduces the value of
A) Assets
B) Expenses
C) Sales
D) Purchases
✅ Correct Answer: D
Explanation: Goods returned to suppliers reduce the overall purchase total.
Q: Partnership deed outlines terms related to
A) Dividend payment
B) Customer data
C) Shareholding
D) Partner roles
✅ Correct Answer: D
Explanation: A partnership deed details responsibilities and profit-sharing of partners.
Q: Wages paid for installation of machinery are treated as
A) Capital expenditure
B) Revenue expense
C) Operating expense
D) Miscellaneous expense
✅ Correct Answer: A
Explanation: Costs related to installing assets are capitalized as part of the asset’s value.
Q: Drawings are deducted from
A) Capital
B) Gross profit
C) Sales
D) Revenue
✅ Correct Answer: A
Explanation: Owner’s withdrawals reduce the capital balance in the business.