Accounting Multiple Choice Questions and Answers

51. Lower the Debt Equity ratio

1. Lower the protection to creditors
2. Higher the protection to creditors
3. It does not affect creditors
4. None of the above

52. Which of the following is not an asset?

1. Motor Vehicle
2. Loan to buy Equipment
3. Building
4. Computer

53. What is the main purpose of financial accounting?

1. Organize financial information
2. Keep track of company expenses
3. Minimize company taxes
4. Provide useful, financial information to outsiders

54. The accounts that records expenses, gains and losses are

1. Personal accounts
2. Real accounts
3. Nominal accounts
4. None of the above

55. The process of entering all transactions from the journal to ledger is called

1. Posting
2. Entry
3. Accounting
4. None of the above