Accounting Equation MCQ & Quiz

Accounting Equation  MCQ Quiz & Online Test: Below is few Accounting Equation MCQ test that checks your basic knowledge of Accounting Equation abilities.This  Accounting Equation MCQ Quiz & Online Test  contains questions 40 of multiple choice with 4 options. You have to select the right answer to a question.

1. The Accounting equation is Asset=Liabilities +................

• Capital
• current Asset
• Total Expense
• Equtiy

• Rs 100,000
• Rs 80,000
• Rs 120,000
• 20,000

3. Accounting equation is the base of

• Single Entry System
• Dual asept Concept
• Double Entry System
• Costing Measurement System

4. Who is the Father of Double Entry System?

• Luca Pascoli
• Pineer Peggler
• Jeromee Lee
• Eugeue F. Fama

• Profit
• Losses
• Expenses
• Revenue

• 850
• 250
• 1100
• 600

7. The Liabilities of a business are Rs 30,000; the capital of proprietor is Rs 70,000. The total asset are ?

• 30,000
• 70,000
• 40,000
• None of thses

8. Accounting principles are generally based on

• Practicability
• Subjectivity
• Conveniences in recodings
• All of the above

• Two Kinds
• Three Kinds
• Four Kinds
• Five Kinds

10. According to the money measurement concept, the following would be recorded in the books of account of the business

• Health of director of company
• Quality of company good"s
• Value of Plant Machinery
• All of the above

11. According to this concept, It is assumed that business will exit for indefinite time period

• Realization concept
• Going concern concept
• None of the above

12. Assets minus liability is

• Profit
• Working Capital
• Capital
• Long term Liability

• 8000
• 2000
• 14000
• 6000

14. The accounting equation represents

• Resource are allocated at Cost Price
• Owner"s Gives money for business
• Resource in the business are not equal to the source of business

15. Purchase good on credit and for cash will effect

• Cash and Good
• Cash Good and Creditor
• Cash and Creditor
• Cash Creditor and Owner's Equity

16. Accounting provides information on

• Cost and Income for managers
• Company"s tax and liabilities for a particular year
• Financial conditions of an Institute
• All of above

• Current Asset
• Fixed Asset
• Intangible Asset
• Investment

18. The equation is part of the transcation anaysis model

• Owner"s equity=Contributed capital+Retained Earnings
• Retained Earnings= Net income-Dividends
• Net Income=income - Expense
• All of the above

19. The Accounting equation shows on a Company ?

• Trial Balance
• Cost Sheet
• Final Account
• Balance Sheet

• Expense
• Owner Drawee
• Revenue
• Loss

21. The assets can be convert into cash within a short period like one year or less are known as

• Current Asset
• Fixed Asset
• Tangiable Asset
• Investment

22. The following is a statement of revenue and expenses for a specific period of a time

• Trial Balance
• Profit & loss statement
• Balance Sheet

• Daily
• Weekly
• Monthly
• Annually

• Share
• Bond
• Equity
• Reserve

25. A Master budget consist

• Sale Budget
• Production Budget
• Material Budget
• All of the above

26. The unfavorable balance of Profit & loss Should be

• Subtract from current asset
• Subtract from Capital
• Subtract from liability

27. Petty Cash fund is supposed to be replenished

• Every Year
• Every Half Year
• Quarterly
• A the end of every account period

28. A bills of exchange when drawn requires

• Nothing
• Discounting
• Acceptance
• None of the above

29. Profit & loss account is prepared for a period of one year by following

• Periodicity concept
• Accrual concept
• None of the above

30. In which of the following interim dividend is treated

• In profit&loss accounting
• In profit & loss appropriation account
• On the asset side of the balance sheet

31. Using "lower of cost and net realisable value" for the purpose of inventory valuation of the implementation which of the following concept ?

• The Going concern concept
• The Separate Entity
• The Prudence concept
• Matching concept

32. Which Financial statement display the revenue and expense of a company for a period of time?

• Income Statement
• Balance sheet
• Cash flow statement
• Statement of Stockholder"s Equity

33. Which of these not include as a separate item in the basic accounting equation?

• Asset
• Liability
• Revenue
• Stockholder"s Equity

34. Which of these not include as a separate item in the basic accounting equation?

• Asset
• Liability
• Revenue
• Stockholder"s Equity

35. The account format that displayed debit, credits, balance, and headings?

• General Journal
• General Ledger
• T-Account
• Ledger Account

36. Marginal cost is concern with

• Fixed cost
• Variable cost
• Semi Variable cost
• None of these above

37. Outstanding salary as shown as

• Added to salary while preparing P&l a/c
• None of these
• Shown in liability side of balance sheet under current liability
• A&b Above

38. Trade payable are recorded in

• Asset side of B&S
• Liability side of B&s
• P&L account
• None of the above

39. The accounting principles are divide into two types. These are

• Accounting Concept
• Accounting conventions
• Accounting standard
• Accounting Concept & Accounting conventions

40. Expenses paid by a business decrease__________________ .

• Cash
• Cash and capital
• Capital
• none of the mentioned

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