 # Accounting Equation MCQ

• 17th Jun, 2021

We have listed below the best Accounting Equation MCQ Questions for your basic knowledge of Accounting Equation. This Accounting Equation MCQ Quiz contains 25+ best Accounting Equation Multiple Choice Questions. You have to select the right answer to every question.

## Practice Best Accounting Equation MCQ Questions:

• A. Rs 20,000
• B.Rs 80,000
• C.Rs 100,000
• D.Rs 120,000

### 2) Assets minus liabilities equals to

• A. Capital
• B.Goodwill
• C.Working capital
• D.Net income

### 3) On January 1st, 2009 an entity’s balance sheet showed total assets of rs. 750 and liabilities of rs. 250. owners’ equity at january 1st was?

• A. Rs. 250
• B.Rs. 500
• C.Rs. 750
• D.Rs. 1,000

• A. Fixed assets
• B.Current assets
• C.Investments
• D.Intangible assets

### 5) Which of these is not included as a separate item in the basic accounting equation?

• A. Revenues
• B.Liability
• C.Stockholder's Equity
• D.Assets

### 6) Profit and loss is calculated at the stage of

• A. Posting
• B.Recording
• C.Classifying
• D.Summarising

### 7) Accounting principles can be classified into______

• A. Two Kinds
• B.Three Kinds
• C.Four Kinds
• D.Five Kinds

• A. 2000
• B.4000
• C.6000
• D.8000

### 9) Fixed assets are held by business for______

• A. Generating revenue
• B.Resale
• C.Converting into cash
• D.None of the above

### 10) Financial statement displays the revenues and expenses of a company for a period of time_______

• A. Balance sheet
• B.Income Statement
• C.Cash flow statement
• D.Stockholder"s Equity

### 11) Purchase goods on credit and for cash will affect______

• A. Cash and Creditor
• B.Cash Good and Creditor
• C.Cash and Good
• D.Cash Creditor and Owner's Equity

### 12) Current Ratio=

• A. Debt/Equity
• B.Current assets/Equity
• C.Current assets/Current liabilities
• D.Quick assets/Current liabilities

### 13) Accounting principles are generally based on

• A. Practicability
• B.Subjectivity
• C.Conveniences in recordings
• D.None of the above

### 14) Purchase of fixed assets for cash would

• A. Reduce current and fixed assets
• B.Keep current and fixed assets unchanged.
• C.Reduce current asset and increase fixed assets.
• D.Reduce current assets and current liabilities

### 15) Which of the following options is not recorded in the balance sheet?

• A. Cash
• B.Goodwill
• C.Building
• D.Rent expenses

### 16) P&L statement is also known as:

• A. Statement of earnings
• B.Statement of operations
• C.Statement of income
• D.None of the above

### 17) Trade payable are recorded in______.

• A. Asset side of B&S
• B.Liability side of B&S
• C.P&L account
• D.None of the above

### 18) Marginal cost is concern are:

• A. Fixed cost
• B.Variable cost
• C.Semi Variable cost
• D.All of the above

### 19) Net asset value is also called as_______

• A. current assets
• B.current assets minus inventories
• C.current assets minus current liabilities
• D.total assets minus fixed assets

### 20) What is an asset ?

• A. Use of fund
• B.Source of fund
• C.Inflow of funds
• D.None of the above

### 21) Petty Cash fund is supposed to be replenished

• A. Every Year
• B.Half Year
• C.Quarterly
• D.Every account period

• A. Share
• B.Bond
• C.Equity
• D.Reserve

### 23) Accounting equation shows on a Company?

• A. Cost Sheet
• B.Balance Sheet
• C.Trial Balance
• D.Final Account

### 24) Base of Accounting equation is______

• A. Single Entry System
• B.Double Entry System
• C.Dual asept Concept
• D.Costing Measurement System

### 25) Who was the Father of Double Entry System?

• A. Luca Pascoli
• B.Eugeue Fama
• C.Jeromee Lee
• D.Pineer Peggler

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