MCQS on Accounts -B.COM ,M.COM, NET/SET

  Q1:- What is the main purpose of financial accounting?

  1. Organise financial information
  2. Minimize company tax
  3. Provide useful, financial information to outsiders
  4. None of the above
Ans:- Provide useful, financial information to outsiders

Q2:-What is the method of summarising and classifying the record of financial transactions in monetary terms?

  1. Cost Accounting
  2. Book Keeping
  3. Accountancy
  4. None of the above
Ans:- Accountancy

Q3:- Identify the correct sequence of accounting process:-

  1. communicating-Recording-Identifying
  2. Identifying-Recording-communicating
  3. Recording-communicating-identifying
  4. None of the above
Ans:- communicating-Recording-Identifying

Q4:- Only significant events which affect the business must be recorded as per the principle of:
  1. Separate Entity
  2. Going Concern
  3. Materiality 
  4. None of the above
Ans:- Materiality

Q5:- Who is regarded as the “Father of Accounting”?
  1. Philip Kotler
  2. F.W Taylor
  3. Luca Pacioli
  4. None of the above
Ans:-Luca Pacioli

Q6:- Accounting means recording of:
  1. Transactions
  2. Events
  3. Both 1&2
  4. None of the above
Ans:- Both 1&2

Q7:- International Accounting Committee was formed in the year.
  1. 1949
  2. 1973
  3. 1980
  4. 1917
Ans:- 1973

Q8:- Valuation of Inventories is described by:
  1. AS-6
  2. AS-2
  3. AS-4
  4. AS-10
Ans:- AS-2

Q9:- Accounting is a language of:
  1. Business
  2. Liabilities
  3. Assets
  4. None of the above

Q10:- International Accounting Standard Board (IASB) was founded on:
  1. 1 April,2001
  2. 4 April 2012
  3. 8 April 1956
  4. 12  April 1956
Ans:- April,2001

Q11:- The word ‘AUDIT’ has been derived from the word:
  1. Audible
  2. Audire
  3. Audio
  4. None of the above
Ans:- Audire

Q12:- A Voucher is:
  1. A book of account
  2. A documentary evidence in support of a transaction
  3. A transaction
  4. None of the above
Ans:- A documentary evidence in support of a transaction.

Q13:- ‘Bank of Last Resort’ represents:
  1. RBI
  2. BOI
  3. UBI
  4. None of the above
Ans:- RBI

Q14:- Current ratio is the relation between:
  1. Current asset and Investment
  2. current asset and Net profit
  3. current asset and fixed asset
  4. None of the above
Ans:-None of the above

Q15:- Shareholders are:-
  1. Employees of the company
  2. Officers of the company
  3. Owners of the company
  4. None of the above
Ans:- Owners of the company

Q16:-Shares can be forfeited due to:
  1. Non-payment of Bank loan
  2. Non-payment of call money
  3. Failure  to attend meeting
  4. None of the above
Ans:- Non-payment of call money

Q17:- A Company is :
  1. A club
  2. An artificial person
  3. A natural person
  4. None of the above
Ans:- An artificial person

Q18:- Profits on revaluation of assets and liabilities is shared by the old partners in :-
  1. Gaining ratio
  2. Old ratio
  3. New ratio
  4. None of the above
Ans:- Old ratio

Q19:- The minimum number of  partners in a firm is:
  1. Two
  2. Three
  3. Six
  4. One
Ans:- Two

Q20:- Accounting standard-3 describes:
  1. Cash flow statement
  2. Income statement
  3. Funds flow statement
  4. None of the above
Ans:- Cash flow statement

Q21 :- Profit & loss Account is also Known as:
  1. Income & Expenditure Account
  2. Cash flow statement
  3. Position statement
  4. None of the above
Ans:- Income & Expenditure Account

Q22:- In which Section the definition of partnership is given under the Partnership Act?
  1. Section 4
  2. Section 9
  3. Section 6
  4. Section 2
Ans:- Section 4

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