Accounting Equation MCQ & Quiz

  1. The Accounting equation is Asset=Liabilities +................
  2. If the assets of a business are Rs . 100,000 and equity is Rs. 20,000, the value of liability will be
  3. Accounting equation is the base of
  4. Who is the Father of Double Entry System?
  5. Net Income=Income - .............
  6. On January 1st 2009 an entity"s balance sheet showed total asset of Rs 850 and total liabilities of Rs 250. Owners equity at January 1st was?
  7. The Liabilities of a business are Rs 30,000; the capital of proprietor is Rs 70,000. The total asset are ?
  8. Accounting principles are generally based on
  9. Accounting principles can be classified into
  10. According to the money measurement concept, the following would be recorded in the books of account of the business
  11. According to this concept, It is assumed that business will exit for indefinite time period
  12. Assets minus liability is
  13. If assets are Rs 8000 and capital is Rs 6000, liabilities will be
  14. The accounting equation represents

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.

Accounting Equation MCQ

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

  • Capital
  • current Asset
  • Total Expense
  • Equtiy

2. If the assets of a business are Rs . 100,000 and equity is Rs. 20,000, the value of liability will be

  • Rs 100,000
  • Rs 80,000
  • Rs 120,000
  • 20,000
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3. Accounting equation is the base of

  • Single Entry System
  • Dual asept Concept
  • Double Entry System
  • Costing Measurement System
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4. Who is the Father of Double Entry System?

  • Luca Pascoli
  • Pineer Peggler
  • Jeromee Lee
  • Eugeue F. Fama
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5. Net Income=Income - .............

  • Profit
  • Losses
  • Expenses
  • Revenue
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6. On January 1st 2009 an entity"s balance sheet showed total asset of Rs 850 and total liabilities of Rs 250. Owners equity at January 1st was?

  • 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
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9. Accounting principles can be classified into

  • Two Kinds
  • Three Kinds
  • Four Kinds
  • Five Kinds
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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
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11. According to this concept, It is assumed that business will exit for indefinite time period

  • Realization concept
  • Going concern concept
  • Business Entity Concept
  • None of the above
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12. Assets minus liability is

  • Profit
  • Working Capital
  • Capital
  • Long term Liability
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13. If assets are Rs 8000 and capital is Rs 6000, liabilities will be

  • 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 equal to source of business
  • Resource in the business are not equal to the source of business
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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
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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
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17. Patent Copyright and Trademark are

  • Current Asset
  • Fixed Asset
  • Intangible Asset
  • Investment
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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
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19. The Accounting equation shows on a Company ?

  • Trial Balance
  • Cost Sheet
  • Final Account
  • Balance Sheet
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20. which of the following will cause owner"s equity increase ?

  • Expense
  • Owner Drawee
  • Revenue
  • Loss
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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
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22. The following is a statement of revenue and expenses for a specific period of a time

  • Trading Accounting
  • Trial Balance
  • Profit & loss statement
  • Balance Sheet
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23. Balance sheet are prepaired

  • Daily
  • Weekly
  • Monthly
  • Annually
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24. Debenture is also name as

  • Share
  • Bond
  • Equity
  • Reserve

25. A Master budget consist

  • Sale Budget
  • Production Budget
  • Material Budget
  • All of the above
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26. The unfavorable balance of Profit & loss Should be

  • Added to liability
  • Subtract from current asset
  • Subtract from Capital
  • Subtract from liability
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27. Petty Cash fund is supposed to be replenished

  • Every Year
  • Every Half Year
  • Quarterly
  • A the end of every account period
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28. A bills of exchange when drawn requires

  • Nothing
  • Discounting
  • Acceptance
  • None of the above
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29. Profit & loss account is prepared for a period of one year by following

  • Periodicity concept
  • Business entity Concept
  • Accrual concept
  • None of the above
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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
  • In trading account
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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
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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
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33. Which of these not include as a separate item in the basic accounting equation?

  • Asset
  • Liability
  • Revenue
  • Stockholder"s Equity
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34. Which of these not include as a separate item in the basic accounting equation?

  • Asset
  • Liability
  • Revenue
  • Stockholder"s Equity
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35. The account format that displayed debit, credits, balance, and headings?

  • General Journal
  • General Ledger
  • T-Account
  • Ledger Account
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36. Marginal cost is concern with

  • Fixed cost
  • Variable cost
  • Semi Variable cost
  • None of these above
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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
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38. Trade payable are recorded in

  • Asset side of B&S
  • Liability side of B&s
  • P&L account
  • None of the above
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39. The accounting principles are divide into two types. These are

  • Accounting Concept
  • Accounting conventions
  • Accounting standard
  • Accounting Concept & Accounting conventions
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40. Expenses paid by a business decrease__________________ .

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