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

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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