Introduction to accounting – MCQs

The liability arising from the purchase of goods or services on credit is called:

The accounts which have their existence even after the close of the accounting year are known as:

The financial information provided by an accounting system is needed by:

A document prepared to authorize and describe an expenditure is termed as:

A percentage reduction from the list price of merchandise allowed to retailers by whole sellers is called:

Current assets minus current liabilities is equal to:

The assets that are used in the operation of the business but have no physical existence are usually known as:

Double entry system of accounting means:

The activities of selecting, processing and reporting the information can be described as:

Resources minus capital equities is equal to:

The complete process of accounting is called:

Stationary is classified as:

Withdrawal of merchandise for personal use is:

The science and art of correctly recording business dealing in a set of books is called:

The modern system of recording business transactions in the books of accounts is known as:

A portion of the accounts receivable which proves to be uncollectible is termed as:

The statement which shows the financial position of a business at a particular date is termed as:

The properties owned by a business enterprise are called:

The right or claim to the properties of a business enterprise is called:

Recording business data in a prescribed manner is called:

Accounts receivable are considered as:

The systematic recording of financial transactions of a business is known as:

The assets that can be converted into cash within one year are called:

The art of measuring, communicating, and interpreting financial activities is called:

The purchase account is used for goods that are for the purpose of:

Bad debts arise from:

Which of the following best explains what is meant by ‘Capital Expenditure’?
Capital Expenditure is expenditure:

Which of the following should be accounted for as capital expenditure?

Which of the following items should be treated as capital expenditure in the financial statements of a sole trader?

Which of the following is an aspect of relevance, according to the Conceptual Framework for Financial Reporting?

According to the Conceptual Framework for Financial Reporting, which qualitative characteristics enhance the usefulness of information that is relevant and faithfully represented?

Which three of the following users of financial statements are likely to be interested in the financial statements of a small private company?

Which 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:

Information about an entity’s financial position is primarily provided in:

According 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?