Accounting Multiple Choice Questions with answers | Download PDF for MCQs

MCQs BASED ON THEORY BASE OF ACCOUNTING

1. The concept of conservation takes into account:

a) All future profit and future losses

b) All future profits but leaves all future losses.

c) All future losses but leaves all futures profit


2. According to money measurement concept which of following will be recorded in books of accounts?

a) all transactions and events are recorded

b) all transactions and events which can be estimated in money terms

c) all transaction and events which can be measured in money terms

d) None of these


3. According to cost concept

a) Assets are recorded at value paid for them.

b) Assets are recorded by estimating the market value the time of purchase.

c) Assets are recorded at lower of cost or market value.

d) None of these


4. According to going concern, a business is assumed as having

a) A limited life

b) An indefinite period

c) A very long life


5. According to which of following concepts, even the proprietor of business is treated as a creditor of business

a) Money measurement concept

b) Cost concept

c) Dual aspect concept

d) Entity concept


6. Realization concept implies

a) The receipt of the order

b) The delivery of goods

c) The receipt of cash from customers


7. IFRS is based on

a) Historical cost

b) Fair value

c) Both (a) and (b)

d) None of these


8. During the life time of an entity, accounting produces financial statements in accordance with which of following accounting concept

a) Matching

b) Conservation

c) Accounting period

d) Cost


9. Non financial quantitative information is not recorded in accounts due to

a) Dual concept

b) Account Concept

c) Money measurement concept

d) Entity concept


10. According to which of the following concept in determining the net income from business, all costs an applicable to the revenue of the period should be charged against that revenues

a) Matching concept

b) Money measurement concept

c) Cost concept

d) Dual concept


11. Vale of stock at lower of cost or net realisable value is an example of?

a) consistency concept

b) conservatism

c) Realisation concept

d) Matching concept


12. X ltd. Follows the written down value method of depreciating machinery year after year due to

a) comparability

b) convenience

c) consistency

d) None of these


13. IFRS are

a) Rule based accounting standards

b) Principal based accounting standards

c) Both (a) and (b)

d) None of above

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