Accounting MCQs / Q&A

The other name of journal is____________?

A. Ledger
B. T account
C. Day book
D. Cash book

Discount allowed is a kind of deduction from_____________?

A. Account payable
B. Account receivable
C. Cash account
D. Discount account

Every business transaction affects at least ________ accounts?

A. One
B. Two
C. Three
D. Infinite

The process of recording transactions in different journals is called_________?

A. Posting
B. Entry making
C. Adjusting
D. Journalizing

General journal is a book of _______ entries?

A. First
B. Original
C. Secondary
D. Generic

Assets-Liabilities=____________?

A. Cash
B. Equity
C. Net income
D. Net expenses

Current assets – Current liabilities=?

A. Capital
B. Absorbed capital
C. Net assets
D. Net working capital

An increase in provision for bad debt will____________?

A. Decrease net income
B. Decrease liabilities
C. Increase net income
D. Increase liabilities

Depreciation decreases____________?

A. Liabilities
B. Cash
C. Bank
D. Capital

If Cash=$1000 inventories=$4000 Debtors=$5000 fixed assets=? Capital+Liabilities=$15000 What is the Amount of total assets?

A. $5000
B. $10,000
C. $15,000
D. $20,000