🧪 MBA MCQ Quiz Hub

MBA Accounting MCQ Question Set 3

Choose a topic to test your knowledge and improve your MBA skills

1. Which of the following is time span into which the total life of a business is divided for the purpose of preparing financial statements?




2. If the total assets of the company amount to Rs 1,50,000 and owner’s equity is Rs 70,000,the amount of liabilities will be




3. The system of recording transaction based on dual aspect concept is called




4. The convention of conservatism is applicable




5. Rules of action or conduct adopted by the accountants universally while recording accounting transaction




6. Which of the following items would not fall under the definition of an asset?




7. Basic assumptions or conditions upon which the science of accounting is based.




8. Which of the following is time span into which the total life of a business is divided for the purpose of preparing financial statements?




9. The system of recording based on dual aspect concept is called:




10. Preliminary expenses are recorded in _____




11. ____ is a person or item for which cost may be ascertained.




12. ____ is a person or item for which cost may be ascertained.




13. Which of the following is not a fixed asset?




14. According to which concept business is treated as a unit apart from owner




15. The reduction in the value of the fixed assets which can arise due to time factor is




16. Which of the following should not be called sales?




17. Which of the following is not regarded as the fundamental accounting concept?




18. Outstanding salaries are shown as:




19. Marginal costing is concerned with:




20. Which of the following account balance will be shown on debit side of Trial Balance?




21. Cash Purchases:




22. The practice of appending notes regarding contingent liabilities in accounting statements is in pursuance to:




23. Sales are equal to:




24. Identify which is wrong rule




25. The work of factory employees that can be physically associated with converting raw material into finished goods is classified as-




26. _______ cost will still be incurred although a plant is shut down temporarily.




27. According to which concept business is treated as a unit apart from owner




28. Variable cost per unit




29. Making the provision for doubtful debts and discount on debtors in anticipation of actual bad debts and discount is an example for which concept




30. liabilities in balance sheet include the following items




31. liabilities in balance sheet include the following items




32. Net profit is calculated in




33. The going concern concept assumes that




34. Accounting principles are divided into two types. These are _________




35. Which expenses is a Capital Nature?




36. The basic function of financial accounting is to




37. Accounting principles are generally based on




38. According to the money measurement concept the following will be recorded in the books of accounts of the business




39. In case of a debt becoming bad, the amount should be credited to




40. Accountant should follow the same principles of accounting continuously is as per which accounting convention




41. A system in which accounting entries are made on the basis of amounts having become due for payment or receipt is called




42. Debit all expenses and losses Credit all gains and income.




43. Transferring the debit and credit item from the journal to the respective accounts is called




44. A statement containing the various ledgers balances on particular date




45. Retained earnings will change over time because of several factors. Which of the following factors would explain an increase in retained earnings?




46. The full disclosure principle, as adopted by the accounting profession, is best described by which of the following?




47. The trial balance is ______




48. Investment in Bonds should be disclosed on the balance sheet.




49. Which of the following functions is managerial accounting intended to facilitate?




50. Accounting principles are




51. Business entity concept distinguishes between:




52. Financial account provide summary of:




53. User of financial statement is:




54. Inventory accounts should be classified in which section of a balance sheet?




55. The Cash account on the balance sheet should not include which of the following items?




56. In accounting all business transaction are recorded as having




57. Which of the following would not be included on a balance sheet?




58. Contingent liabilities should be recorded in the accounts when:




59. The cost concept records the figures at




60. Financial statements are:




61. The term Management Accounting was first used in




62. Which does not comes under the head of asset:




63. The word accounting can be classified in to:




64. The work of a book keeper is ______________ in nature.




65. Which of the following is true for: – "In accounts recording is done of_ _ _ _




66. Salary is one of the ______________ expenses




67. A company's telephone bill consisting of a Rs.200 monthly base amount, plus long distance charges, would be classified as a:




68. The practice of appending notes regarding contingent liabilities in accounting statement is pursuant of




69. In manufacturing a product, prime costs are:




70. Because of automation, which component of product cost is declining?




71. Salary paid to factory manager is an item of:




72. Aggregate of cost of goods sold and selling and distribution overheads is known as:




73. Cost accounting information can be used for:




74. Which one of the following would not be classified as manufacturing overhead?




75. A manufacturing process requires small amounts of glue. The glue used in the process is classified as




76. Lubricants, used regularly in a production process, are classified as




77. Manufacturing costs are also known as product costs. Which of the following best describes those costs which are considered to be manufacturing costs?




78. Accounting principles are ______________ which are adopted by the accountant universally while recording accounting transaction.




79. Showing purchased office equipments in financial statements is the application of which accounting concept?




80. Which of the following should not be called sales?




81. Material concept tell about




82. Using "lower of cost and net realisable value(Market Value)" for the purpose of inventory valuation is the implementation of which of the following concepts?




83. Which financial statement represents the accounting equation ASSETS = LIABILITIES + OWNER'S EQUITY




84. Cost accounting aims at ascertain ______________ of product




85. The purpose of financial accounts is reporting to




86. Financial accounting use data




87. What comes in is to be debited, what goes out is to be credited.




88. Payment of salary is recorded by:




89. Amortization of intangible Asset Such as Goodwill which has indefinite life is an example of accounting concept




90. ________ cost refers to those cost which have already been incurred and cannot be altered by any decision in the future.




91. The main object of cost accounting is:




92. The nature of financial accounting is




93. An accounting that deals with the accounting and reporting of information to management regarding the detail information is




94. Bad debt amount should be credited to




95. Management accounting concentrates on _______




96. Which of the following is not an internal user of management information?




97. Double entry system is used in which type of accounting




98. Which type of asset class includes those assets which have only definite use and become valueless when the yield is over?




99. Cost accounting is applied to:




100. Reserve for doubtful debts appearing in the trial balance should be: