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: Discount allowed is considered as
A) Asset
B) Expense
C) Liability
D) Income
✅ Correct Answer: B
Explanation: Discounts given to customers reduce income and are treated as expenses.
Q: Accounting year refers to the period for
A) Preparing financial statements
B) Tax filing
C) Daily reporting
D) Stock valuation
✅ Correct Answer: A
Explanation: The accounting year is the period over which a company reports its results.
Q: Accrued expenses are classified under
A) Capital
B) Current assets
C) Income
D) Current liabilities
✅ Correct Answer: D
Explanation: Accrued expenses are unpaid amounts due and are liabilities.
Q: Rent outstanding at the end of the year is recorded as
A) Liability
B) Income
C) Expense
D) Asset
✅ Correct Answer: A
Explanation: Outstanding rent is an unpaid obligation, hence a liability.
Q: Journal entries are recorded in chronological order in
A) Cash book
B) Journal proper
C) Ledger
D) Trial balance
✅ Correct Answer: B
Explanation: Journal entries are recorded in the journal in the order they occur.