Double Entry Bookkeeping MCQs Quiz

Double Entry Bookkeeping MCQs will be helpful for the students of accounting and finance to prepare themselves for their exams and interviews. If you are feeling hard to answer the questions, we strongly recommend you to read our “Double Entry Bookkeeping” sections thoroughly. Let’s Start the MCQs test below:

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1. In simple words, happening of something is called:

 
 
 

2. Those events which are related with money are called:

 
 
 
 

3. Those events which are not related with money are called:

 
 
 
 

4. A dealing between two persons are parties for a particular thing is called:

 
 
 
 

5. The transaction which involves business and a second outside party is called:

 
 
 
 

6. A transaction which does not include an outside party is called:

 
 
 
 

7. Double Entry Accounting System may be defined as:

 
 
 
 

8. One of the following is not an advantage of double entry accounting system.

 
 
 
 

9. Accounting equation may be expressed as:

 
 
 
 

10. One of the following is not a transaction.

 
 
 
 

11. A customer returns goods to a supplier. How does the supplier record this in his ledger?

accounts to be debited accounts to be credited
A customer purchase returns
B customer sales returns
C purchase returns customer
D sales returns customer
 
 
 
 

12. A company buys goods on credit from the private fund of a proprietor. What will be the effect on assets and liabilities?

Effect upon Assets Effect Upon Liabilities
A Reduce Bank Reduce Creditors
B Increase Cash No effect
C Increase Cash Decrease Loan
D Increase Stock Increase Capital
 
 
 
 

13. Identify the incorrect statement:

Effect upon
Assets Liabilities
A Paid creditors by cheque – bank + creditors
B Bought goods on credit + stock + creditors
C Received cash from the debtor + cash, – debtors
D Sold goods for cash + cash, – stock
 
 
 
 

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