MCQs / Q&A

A chart of accounts generally start with which of the following types of accounts?

A. Assets accounts
B. liability accounts
C. Cash accounts
D. Revenue accounts

The first step in accounting process is___________?

A. Recording the transaction
B. Identifying the transaction
C. Posting the transaction
D. Preparing the source documents

Discount for quick repayment of debt is normally referred as____________?

A. Trade discount
B. Prompt payment discount
C. Cash discount
D. Bulk discount

Which of the following accounts will be credited if a company purchases building for cash?

A. Capital account
B. Fixed assets account
C. Building account
D. Cash account

In which of the following orders data is entered in journal?

A. Alphabetical order
B. Numeric order
C. Bullets order
D. Chronological order

The standard format of journal does not include which of the following?

A. Assets column
B. Date column
C. Description column
D. Amount column

Journals are also referred as_____________?

A. Book of entries
B. Book of original entries
C. T account
D. Books of economic event

Which of the following accounts will be debited if the business’s owner withdraws cash from business for his personal use?

A. Drawings
B. Cash
C. Business
D. Stock

Which of the following will be debited if a business purchases goods on credit?

A. Cash
B. Debtor
C. Creditor
D. Purchases

_________ is the evidence that a transaction took place?

A. Source documents
B. Ledger
C. Bonds
D. Journals