Accounting Equation MCQs

1) Accounting principles are generally based on
(A) Practicability
(B) Subjectivity
(C) Conveniences in recordings
(D) All of the above

2) Realization concepts implies
(A) The receipts of the order
(B) The delivery of the goods
(C) The receipt of cash from customers
(D) None of these

3) Accounting principles are generally based on:
(A) Theory
(B) Practicability
(C) Subjectivity
(D) None of these

4) Accounting principles can be classified into
(A) Two kinds
(B) Three kinds
(C) Four kinds
(D) Five kinds

5) A person or enterprise to whom a debt is owed
(A) Accounts receivable
(B) Note Payable
(C) Note receivable
(D) Accounts Payable

6) A business event which can be measured in terms of money and recorded in the books of accounts is called
(A) Assets
(B) Equities
(C) Owners equity
(D) Transaction

7) The expression of the equality of an entity’s assets with the claims against them is referred to as the
(A) Accounting equations
(B) Accounting transaction
(C) Bookkeeping
(D) None of these

8) The system of recording transactions based on dual aspect concept is called
(A) Double account system
(B) Double entry system
(C) Single entry system
(D) Modern entry system

9) Universally accepted customs, rules or traditions are called
(A) Accounting Principles
(B) Accounting rules
(C) Accounting traditions
(D) Accounting conventions

10) According to the money measurement concept, the following would be recorded in the books of accounts of the business
(A) Health of director of the company
(B) Quality of company’s goods
(C) Value of plant machinery
(D) All of the above


Like our Facebook Page