Accounting MCQ Quiz - Multiple Choice Questions & Answers

1. Budgeting is difficult to apply in the following cases

1. Products subjected to rapid changes
2. Job order manufacturing
3. Uncertain market conditions
4. All of the above

2. The following is (are) the type(s) of Journal

1. Purchase journal
2. Sales journal
3. Cash journal
4. All of the above

3. Current ratio =

1. Quick assets / Current liabilities
2. Current assets / Current liabilities
3. Debt. / Equity
4. Current assets / Equity

4. A Master Budget consists of

1. Sales budget
2. Production budget
3. Material budget
4. All of the above

5. In journal, the business transaction is recorded

1. Same day
2. Next day
3. Once in a week
4. Once in a month

6. The following is not a type of liability

1. Short term
2. Current
3. Fixed
4. Contingent

7. Which of the following would not be found on a standardized balance sheet?

1. Tangible Assets
2. Amounts written off Investments
3. Debtors
4. Share Premium Account

8. The following is a statement showing the financial status of the company at any given time

1. Trading account
2. Profit and Loss statements
3. Balance sheet
4. Cash book

9. The following is a statement of revenues and expenses for a specific period of time

1. Trading account
2. Trial balance
3. Profit and loss statements
4. Balance sheet

10. The sales income (Credit and Cash) of a business during a given period is called

1. Transactions
2. Sales returns
3. Turnover
4. Purchase returns