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: Loss from sale of fixed asset is shown under
A) Direct expenses
B) Indirect expenses
C) Liabilities
D) Assets
✅ Correct Answer: B
Explanation: Such losses are considered indirect expenses in the profit and loss account.
Q: Capital expenditure leads to
A) Losses
B) Recurring expenses
C) Acquisition of assets
D) Reduction in capital
✅ Correct Answer: C
Explanation: Capital expenditure is incurred for acquiring or improving fixed assets.
Q: Drawings in kind are recorded at
A) Book value
B) Purchase price
C) Cost price
D) Market value
✅ Correct Answer: C
Explanation: Goods withdrawn are valued at the cost price for accounting.
Q: Salaries account is classified as
A) Revenue
B) Personal
C) Nominal
D) Real
✅ Correct Answer: C
Explanation: Expenses such as salaries are nominal accounts.
Q: Debentures are shown under which heading
A) Long-term liability
B) Equity
C) Reserves
D) Current liability
✅ Correct Answer: A
Explanation: Debentures are borrowed funds repayable in the long term.