1st
2nd
3rd
4th
5th
100

Which of the following best defines accounting?
a) Recording transactions only
b) Recording, classifying, and summarising transactions
c) Preparing budgets only
d) Auditing accounts only

b) Recording, classifying, and summarising transactions

100

Double entry means:
a) Single aspect of transaction
b) Dual aspect of transaction
c) Triple aspect of transaction
d) Multiple aspect of transaction

b) Dual aspect of transaction

Each transaction affects two accounts — one debit, one credit.

100

The process of transferring entries from journal to ledger is called:
a) Casting
b) Journalising
c) Posting
d) Balancing

c) Posting

100

Which type of account is ‘Salary Account’?
a) Real Account
b) Personal Account
c) Nominal Account
d) Capital Account

c) Nominal Account

100

Who among the following is an internal user of accounting information?
a) Creditors
b) Government
c) Managers
d) Tax authorities

c) Managers

200

The first step in the accounting cycle is:
a) Preparation of trial balance
b) Posting to ledger
c) Journalising transactions
d) Preparation of final accounts

c) Journalising transactions

200

“Debit what comes in, credit what goes out” — relates to which account?
a) Personal Account
b) Real Account
c) Nominal Account
d) Mixed Account

b) Real Account

200

Which of the following is NOT a branch of accounting?
a) Financial Accounting
b) Cost Accounting
c) Management Accounting
d) Marketing Accounting

d) Marketing Accounting

200

Carriage inward is shown in:
a) Trading A/c
b) Profit & Loss A/c
c) Balance Sheet
d) Cash Book

a) Trading A/c

It’s a direct expense related to bringing goods to the business.

200

Which of these is NOT shown in a Balance Sheet?
a) Assets
b) Liabilities
c) Capital
d) Gross Profit

d) Gross Profit

300

The main objective of financial accounting is to:
a) Keep systematic records
b) Provide information to users
c) Ascertain profit or loss
d) All of the above

d) All of the above

300

Which of the following is a real account?
a) Cash Account
b) Capital Account
c) Rent Account
d) Interest Account

a) Cash Account

300

Net Profit is calculated in which account?
a) Trading Account
b) Cash Book
c) Profit & Loss Account
d) Balance Sheet

c) Profit & Loss Account

300

Depreciation is charged on:
a) Current Assets
b) Fixed Assets
c) Liabilities
d) Incomes

b) Fixed Assets

Depreciation is loss in value of fixed assets due to wear & tear.

300

Bookkeeping mainly involves:
a) Interpretation of data
b) Recording of financial transactions
c) Auditing of accounts
d) Analysis of financial statements

b) Recording of financial transactions

400

Which of the following accounts is prepared to ascertain gross profit?
a) Trading Account
b) Profit & Loss Account
c) Balance Sheet
d) Cash Book

a) Trading Account

400

Which principle assumes that all transactions are recorded in monetary terms?
a) Going Concern
b) Accrual
c) Money Measurement
d) Consistency

c) Money Measurement

Only transactions that can be measured in money are recorded.

400

A trial balance is prepared to:
a) Find profit or loss
b) Record transactions
c) Check arithmetical accuracy
d) Analyse cash flows

c) Check arithmetical accuracy

400

Income received in advance is treated as:
a) Asset
b) Liability
c) Expense
d) Reserve

b) Liability

It’s not yet earned → obligation → liability.

400

Purchases Return  is also known as:
a) Return Inward
b) Return Outward
c) Debit Note
d) Credit Note  

b) Return Outward

Goods returned to suppliers → Purchases Return → Return Outward

500

Which of these is NOT a subsidiary book?
a) Purchases Book
b) Sales Book
c) Journal Proper
d) Ledger

d) Ledger

500

Which of the following is NOT a function of accounting?
a) Recording transactions
b) Classifying transactions
c) Auditing financial statements
d) Summarising transactions

c) Auditing financial statements

500

Which of the following is a statement of financial position?
a) Trading Account
b) Profit & Loss Account
c) Balance Sheet
d) Cash Book

c) Balance Sheet

500

Which account is prepared to know indirect incomes & indirect expenses?
a) Trading A/c
b) Profit & Loss A/c
c) Balance Sheet
d) Journal

b) Profit & Loss A/c

All indirect costs & losses are debited and all indirect incomes & gains are credited. The net result shows Net Profit (if credit side > debit side) or Net Loss (if debit side > credit side).

500

Which accounting concept assumes that a business will continue for a long time?
a) Money Measurement Concept
b) Going Concern Concept
c) Cost Concept
d) Dual Aspect Concept

b) Going Concern Concept

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