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Accounting Mcqs

SALE of old furniture” will be recorded in which of the following specialised journals?

  • (A)  Purchase journal
  • (B)  Sales journal
  • (C)  General journal
  • (D)  Cash receipt journal
Submitted By :Ali Uppal


Debit note is the basis for recording a transaction in which of the following journals?

  • (A)  General journal
  • (B)  Cash journal
  • (C)  Purchase journal
  • (D)  Purchase return journal
Submitted By :Ali Uppal


Credit purchase of plant and machinery is recorded in which of the following journals?

  • (A)  General journal
  • (B)  Cash journal
  • (C)  Purchase journal
  • (D)  Purchase return journal
Submitted By :Ali Uppal


A brief explanation recorded below every entry in general journal is commonly known as__________?

  • (A)  Narration
  • (B)  Explanation
  • (C)  Summary
  • (D)  Other information
Submitted By :Ali Uppal


Cash purchases is recorded in which of the following specialized journals?

  • (A)  Purchase journal
  • (B)  Sales journal
  • (C)  Purchases return journal
  • (D)  Cash payments journal
Submitted By :Ali Uppal


_________ is the first phase of accounting cycle?

  • (A)  Identifying an economic event or transaction
  • (B)  Preparing journals
  • (C)  Posting entries to ledger accounts
  • (D)  Making decisions about business
Submitted By :Ali Uppal


Which of the following is the internal user of financial statements?

  • (A)  Creditor of the business
  • (B)  Government agency
  • (C)  Shareholder of the business
  • (D)  Manager of the business
Submitted By :Ali Uppal


Which of the following is the external user of financial statements?

  • (A)  Manager of the business
  • (B)  CEO of the business
  • (C)  Creditor of the business
  • (D)  Controller of the business
Submitted By :Ali Uppal


Auditing is what?

  • (A)  Reporting the financial information
  • (B)  Examination of financial statements
  • (C)  Preparation financial statements
  • (D)  maintaining the ledger records
Submitted By :Ali Uppal


Keeping the log of financial information in books of original entries is called__________?

  • (A)  Recording
  • (B)  summarizing
  • (C)  Grouping
  • (D)  Processing
Submitted By :Ali Uppal