🧪 MBA MCQ Quiz Hub

1. Creating Provision against fluctuation in the price of investment is an example of which accounting convention
Convention of conservatism
Convention of full disclosure
Convention of materiality
Convention of consistency

2. Return of goods by a customer should be debited to
Customers account
Sales return account
Goods account
Purchase account

3. Cash discount allowed to a debtor should be credited to
Discount account
Customer’s account
Sales account
Cash account

4. The concept of separate entity is applicable to which of following types of businesses?
Sole proprietorship
Corporation
Partnership
All of them

5. Accounting principles are generally based upon:
Practicability
Subjectivity
Convenience in recording
None of the above

6. Debit the receiver credit the giver rule for
Real a/c
Personal a/c
Nominal a/c
None of these

7. Managerial accounting information is generally prepared for
Shareholders
Creditors
Managers
Regulatory agencies

8. True & fair profit and loss a/c of a company know by
Preparing trial balance
Preparing respective ledger of account
Preparing trading a/c
Preparing trading & profit & loss a/c

9. Which one of the following items would fall under the definition of a liability
Cash
Debtor
Owner’s equity
None of these

10. The basic sequence in the accounting process can best be described as:
Transaction, journal entry, source document, ledger account, trial balance.
Source document, transaction, ledger account, journal entry, trial balance.
Transaction, source document, journal entry, trial balance, ledger account.
Transaction, source document, journal entry, ledger account, trial balance.

11. Amount brought in by proprietor should be credited to
cash account
capital account
drawings account
creditors account

12. Which of the following is a real (permanent) account?
Goodwill
Sales
Accounts Receivable
Both Goodwill and Accounts Receivable

13. Which of the following errors will be disclosed in the preparation of a trial balance?
Recording transactions in the wrong account.
Duplication of a transaction in the accounting records.
Posting only the debit portion of a particular journal entry.
Recording the wrong amount for a transaction to both the account debited and the account credited.

14. Management Accounting provides invaluable services to management in performing
All management function
Interpret financial data
Controlling function
None of these

15. If closing stock appears in the trial balance, it should be
Credited to the trading account
Credited to the profit and loss account
Deducted from the purchases in the trading account
Shown on the liability side of the Balance sheet

16. Financial information should be neutral and bias free" is the dictation of which one of the following?
Completeness concept
Faithful representation Concept
Objectivity Concept
Duality Concept

17. Which of the following statements is not an objective of financial reporting?
Provide information that is useful in investment and credit decisions.
Provide information regarding policy of organisation
Provide information that is useful in assessing cash flow prospective
None of theses

18. A company's telephone bill consisting of a Rs.200 monthly base amount, plus long distance charges, would be classified as a:
Variable cost
Committed fixed cost
Direct cost
Semi variable cost

19. A book containing a chronological record of business transaction & original record
Journal
Ledger
Trial balance
None of these

20. Which of these items would be accounted for as an expense?
Repayment of bank Loan
Dividend to stock holders
The purchase of land
Payment of current period rent

21. The amount of salary paid to Suresh should be debited to
The account of Suresh
Salaries a/c
Cash a/c
Bank a/c

22. The cash discount allowed to a debtor should be credited to
Discount a/c
Customer a/c
Sales a/c
None of these

23. Accounting does not record non-financial transactions because of:
Accrual concept
Cost concept
Continuity concept
Money measurement concept

24. The concept of separate entity is applicable to which of following types of businesses?
Sole proprietorship
Corporation
Partnership
All of them

25. Accounting is the process of matching
Benefits & Costs
Revenues & Costs
Cash Inflow & Cash Outflow
Potential & Real Performance

26. The primary objective of cost accounting is
Ascertain the cost of goods and services
Ascertain the profit
Presentation of all data
None of these

27. Of the following account types, which would be increased by a debit?
Liabilities and expenses.
Assets and equity.
Assets and expenses.
Equity and revenues.

28. Which of the following statements about differences between financial and managerial accounting is incorrect?
Managerial accounting information is prepared primarily for external parties such as stockholders and creditors; financial accounting is directed at internal users.
Financial accounting is aggregated; managerial accounting is focused on products and departments.
Managerial accounting pertains to both past and future items; financial accounting focuses primarily on past transactions and events.
Financial accounting is based on generally accepted accounting practices; managerial accounting faces no similar constraining factors.

29. Custom and traditions which guide the accountant while preparing the accounting statements
Accounting convention
Accounting concepts
Accounting principles
None of these

30. Balance Sheet is a statement of
Assets
Liabilities
Capital
All of these

31. The convention of disclosure implies that all material information should be
Disclosed in the account
Disclosed in the accounts which is required to owner
Not disclosed
None of these

32. Outstanding salary is shown as:
An asset in the balance sheet
A liability
By adjusting it in the P & L a/c
Both b and c above

33. Proprietor (owner) is treated as creditor of business due to:
Periodicity concept
Materiality Principle
Entity Concept
Consistency concept

34. Which of the following is correct
Profit does not alter capital
Capital can only come from profit
Profit reduces capital
Profit increases capital

35. Interest , rent, electricity bill are types of account
Personal a/c
Impersonal a/c
Real a/c
Nominal a/c

36. Cost of asset should always be equal to the cost of the liabilities. This concept is
Double Entry Bookkeeping
Matching Concept
Consistency
Money measurement Concept

37. P& l a/c is prepared for a period of one year by following:
Consistency concept
Conservatism concept
Accounting period concept
Cost Concept

38. Prepaid expense is treated as
Current asset
Current liability
Short term liability
None of these

39. Which of the following is a liability?
Loan from Mr.Y
loan to Mr.y
Both (a) (b)
None of these

40. Advantages of cost accounting accrue:
Only to workers
Only to government
Only to consumers
To management, workers, consumers and government

41. Marginal costing is concerned with:
Fixed cost
Variable cost
Semi variable cost
None of the above

42. The books to be compulsorily maintained by a company are:
Cash book and ledger
Sales and purchase book
Journal
All of a, b, c above

43. Which of the following best describes a trial balance?
It is a list of balances on the books
It is a special account
Shows the financial position of a business
Shows all the entries in the books

44. Which of the following equation is related with Dual Aspect Concept ?
Total Assets = Total Liabilities
Total Assets = Capital + Outsider’s Liabilities
Capital = Total Assets - Outsider’s Liabilities
All of the above

45. The prime function of accounting is to
To record economic data
Provide the information basis of action
Classifying and recording business transaction
Attainment of economic goal

46. According to schedule VI Companies Act which item is not shown on Asset side of Balance sheet
Investment
Current Loan & Advances
Provision
Lease Holds

47. Salary paid to factory manager is an item of:
Prime cost
Factory overhead
Selling overhead
Office overhead

48. Carriage outward is charged to
Debit side Profit & Loss a/c
Debit side Trading a/c
Credit side of Profit & Loss a/c
Credit side of trading a/c

49. Payment received from Debtor
Decreases the Total Assets
Increases the Total Assets
Results in no change in the Total Assets
Increases the Total Liabilities

50. Accounting does not record non-financial transactions because of:
Accrual concept
Cost concept
Continuity concept
Money measurement concept