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Accounting Mcqs

The assets which come into existence upon the happening of a certain event are called__________?

  • (A)  Contingent assets
  • (B)  Fixed assets
  • (C)  Fictitious assets
  • (D)  Quick assets
Submitted By :Ali Uppal


The assets which have some market value are called ____________?

  • (A)  Fixed asset
  • (B)  Quick asset
  • (C)  Fictitious assets
  • (D)  Real assets
Submitted By :Ali Uppal


Assets having physical existence are called ___________?

  • (A)  Current asset
  • (B)  intangible asset
  • (C)  Tangible asset
  • (D)  Liquid asset
Submitted By :Ali Uppal


When owner withdraw cash for its private use, it is called ___________?

  • (A)  Profit
  • (B)  Income
  • (C)  Expense
  • (D)  Drawing
Submitted By :Ali Uppal


For the business, capital is ____________?

  • (A)  Expense
  • (B)  Liability
  • (C)  Assets
  • (D)  All of them
Submitted By :Ali Uppal


If debit balances = credit balances, trial balance only shows or check the ____________ and it does not indicate that no errors were made during recording and posting.

  • (A)  Arithmetic accuracy
  • (B)  Errors of commission
  • (C)  Omissions of economic events
  • (D)  Understatements of balances
Submitted By :Ali Uppal


Which of the following will affect the agreement of a trial balance?

  • (A)  Complete omission of a transaction
  • (B)  Partial omission of a transaction
  • (C)  Error of principle
  • (D)  Compensating errors
Submitted By :Ali Uppal


Trial balance is commonly prepared?

  • (A)  Frequently during the year
  • (B)  At the end of an accounting period
  • (C)  At the end of a month
  • (D)  At the end of a year
Submitted By :Ali Uppal


Debit balance = Credit balance in a trial balance indicates that:

  • (A)  No error in recording transactions
  • (B)  No error in posting entries to ledger accounts
  • (C)  Account balances are correct
  • (D)  Mathematically Capital+Liabilities=Assets
Submitted By :Ali Uppal


Which of the following is true about a trial balance?

  • (A)  It lists down the balances of accounts
  • (B)  It lists down the balances of a balance sheet
  • (C)  It is a kind of financial statement
  • (D)  It is not a part of accounting cycle
Submitted By :Ali Uppal