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: 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.