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: 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.