Identify the asset from the following:
A. Cash and cash equivalent
B. Creditors
C. Notes payable
D. Bank loan
Accounting MCQs / Q&A
What is equity?
What is equity?
A. Cash from the business
B. liability of a business
C. Owner’s claim on total assets
D. Owner’s claim on total liabilities
Which of the following is a liability?
Which of the following is a liability?
A. Cash
B. Equipment
C. Debtors
D. Creditors
What is the basic accounting equation?
What is the basic accounting equation?
A. Capital+Liabilities=Assets
B. Assets+ liabilities =Capital
C. Capital+assets=liabilities
D. Liabilities+Capital
Which is the most important characteristic that all assets of a business have?
Which is the most important characteristic that all assets of a business have?
A. Long life of assets
B. Value of assets
C. Intangible nature of assets
D. Future economic benefits
Which of the following can be considered as the most important phase of accounting cycle and it is the primarily objective of financial accounting?
Which of the following can be considered as the most important phase of accounting cycle and it is the primarily objective of financial accounting?
A. Identifying transactions
B. Preparing “T Accounts”
C. Preparing financial statements
D. Preparing trial balances
Liability are arisen from which of the following events?
Liability are arisen from which of the following events?
A. Present event
B. Future event
C. Past event
D. None of them
An asset must be _______ by the business to be shown as an asset in its “balance sheet”
An asset must be _______ by the business to be shown as an asset in its “balance sheet”
A. Possessed
B. Owned
C. Controlled
D. Used
The gross decrease in economic benefits for the business are what?
The gross decrease in economic benefits for the business are what?
A. Expenses
B. Obligations
C. Creditors
D. Income or gain
________ is the gross inflow of economic benefits?
________ is the gross inflow of economic benefits?
A. Assets
B. Liabilities
C. Income
D. Expenses