Take a quick Multiple Choice Questions (MCQs) test about Introduction to accounting. These MCQs can help you to prepare for your exams, interviews and different tests. Just click the “start quiz” button and start the introduction to accounting MCQs quiz.
If you find difficulty in answering these questions, read ‘Introduction to accounting‘ chapter thoroughly from explanation section of the website.
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Question 1 of 35
1. Question
1 pointsThe liability arising from the purchase of goods or services on credit is called:
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Question 2 of 35
2. Question
1 pointsThe accounts which have their existence even after the close of the accounting year are known as:
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Question 3 of 35
3. Question
1 pointsThe financial information provided by an accounting system is needed by:
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Question 4 of 35
4. Question
1 pointsA document prepared to authorize and describe an expenditure is termed as:
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Question 5 of 35
5. Question
1 pointsA percentage reduction from the list price of merchandise allowed to retailers by whole sellers is called:
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Question 6 of 35
6. Question
1 pointsCurrent assets minus current liabilities is equal to:
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Your answer is incorrect. The correct answer is “working capital” (option 1).
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Question 7 of 35
7. Question
1 pointsThe assets that are used in the operation of the business but have no physical existence are usually known as:
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Question 8 of 35
8. Question
1 pointsDouble entry system of accounting means:
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Question 9 of 35
9. Question
1 pointsThe activities of selecting, processing and reporting the information can be described as:
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Question 10 of 35
10. Question
1 pointsResources minus capital equities is equal to:
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Question 11 of 35
11. Question
1 pointsThe complete process of accounting is called:
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Question 12 of 35
12. Question
1 pointsStationary is classified as:
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Question 13 of 35
13. Question
1 pointsWithdrawal of merchandise for personal use is:
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Question 14 of 35
14. Question
1 pointsThe science and art of correctly recording business dealing in a set of books is called:
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Question 15 of 35
15. Question
1 pointsThe modern system of recording business transactions in the books of accounts is known as:
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Question 16 of 35
16. Question
1 pointsA portion of the accounts receivable which proves to be uncollectible is termed as:
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Question 17 of 35
17. Question
1 pointsThe statement which shows the financial position of a business at a particular date is termed as:
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Question 18 of 35
18. Question
1 pointsThe properties owned by a business enterprise are called:
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Question 19 of 35
19. Question
1 pointsThe right or claim to the properties of a business enterprise is called:
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Question 20 of 35
20. Question
1 pointsRecording business data in a prescribed manner is called:
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Question 21 of 35
21. Question
1 pointsAccounts receivable are considered as:
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Question 22 of 35
22. Question
1 pointsThe systematic recording of financial transactions of a business is known as:
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Question 23 of 35
23. Question
1 pointsThe assets that can be converted into cash within one year are called:
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Question 24 of 35
24. Question
1 pointsThe art of measuring, communicating, and interpreting financial activities is called:
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Your answer is incorrect. The correct answer is “financial accounting” (option 3).
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Question 25 of 35
25. Question
1 pointsThe purchase account is used for goods that are for the purpose of:
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Question 26 of 35
26. Question
1 pointsBad debts arise from:
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Your answer is incorrect. The correct answer is “Sales on account or credit sales” (option 1).
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Question 27 of 35
27. Question
1 pointsWhich of the following best explains what is meant by ‘Capital Expenditure’?
Capital Expenditure is expenditure:Correct
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Question 28 of 35
28. Question
1 pointsWhich of the following should be accounted for as capital expenditure?
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Question 29 of 35
29. Question
1 pointsWhich of the following items should be treated as capital expenditure in the financial statements of a sole trader?
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Question 30 of 35
30. Question
1 pointsWhich of the following is an aspect of relevance, according to the Conceptual Framework for Financial Reporting?
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Question 31 of 35
31. Question
1 pointsAccording to the Conceptual Framework for Financial Reporting, which qualitative characteristics enhance the usefulness of information that is relevant and faithfully represented?
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Question 32 of 35
32. Question
1 pointsWhich three of the following users of financial statements are likely to be interested in the financial statements of a small private company?
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Question 33 of 35
33. Question
1 pointsWhich two of the following information needs apply to the government and its agencies in relation to the business of a sole trader?
The government and its agencies need the information to:
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Question 34 of 35
34. Question
1 pointsInformation about an entity’s financial position is primarily provided in:
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Explanation
The financial position of an entity is reflected in the resources it control (assets), financial structure (debt and capital), liquidity (cash) and solvency (ability to pay its debts). Most of this information is provided in the statement of financial position.
The income statement primarily provides information about entity’s financial performance, while the statement of cash flows reflects changes in the financial position. Retained earnings is a figure in the statement of financial position which accumulates movements over the years in retained earnings.
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Question 35 of 35
35. Question
1 pointsAccording to the Conceptual Framework for Financial Reporting, information on which Two of the following areas can help users identify the reporting entity’s financial strength and weaknesses?
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Incorrect
Oops!! Your answer is not correct. The Correct Answer is “Option 1 and 4”
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Why you wrote relevance as timeliness you know surveys provide questions which are simple and understandable according to students chapter. It’s just an introduction of accounting chapter and you should ask according to your website title. If want to ask these questions then change your website name to theory questions of accounting for graduated students. I think it’s not for 11 or 12 students.