Accounting Mcqs

Assets-Liabilities=____________?

• (A)  Cash
• (B)  Equity
• (C)  Net income
• (D)  Net expenses

Answer

Submitted By :Ali Uppal

Current assets – Current liabilities=?

• (A)  Capital
• (B)  Absorbed capital
• (C)  Net assets
• (D)  Net working capital

Answer

Submitted By :Ali Uppal

An increase in provision for bad debt will____________?

• (A)  Decrease net income
• (B)  Decrease liabilities
• (C)  Increase net income
• (D)  Increase liabilities

Answer

Submitted By :Ali Uppal

Depreciation decreases____________?

• (A)  Liabilities
• (B)  Cash
• (C)  Bank
• (D)  Capital

Answer

Submitted By :Ali Uppal

If Cash=$1000 inventories=$4000 Debtors=$5000 fixed assets=? Capital+Liabilities=$15000 What is the Amount of total assets?

• (A)  $5000
• (B)  $10,000
• (C)  $15,000
• (D)  $20,000

Answer

Submitted By :Ali Uppal

Which of following best describes the increase in equity expands___________?

• (A)  Business operations
• (B)  cash outflows
• (C)  Inflows of cash
• (D)  Appropriation expenses

Answer

Submitted By :Ali Uppal

Cash received for services rendered will______________?

• (A)  Increase cash and liability
• (B)  Increase equity and liability
• (C)  Increase fixed assets and cash
• (D)  Increase cash and equity

Answer

Submitted By :Ali Uppal

Fresh capital introduction will increase____________?

• (A)  Assets and liabilities
• (B)  Assets and equity
• (C)  Liabilities and equity and bank balance
• (D)  Capital and liabilities

Answer

Submitted By :Ali Uppal

Which of the following accounting equation is correct?

• (A)  Cash+Other assets=Capital-Liabilities
• (B)  Capital+ Liabilities=Assets+Income
• (C)  Assets-Liabilities=Capital
• (D)  Assets+Capital=Liabilities

Answer

Submitted By :Ali Uppal

_________ is the evidence that a transaction took place?

• (A)  Source documents
• (B)  Ledger
• (C)  Bonds
• (D)  Journals

Answer

Submitted By :Ali Uppal