Accounting

Master the fundamentals of Accounting with our extensive collection of Accounting MCQs with answers and detailed explanations. Covering topics like financial accounting, cost accounting, auditing, partnership accounts, corporate accounting, and managerial accounting, these multiple-choice questions are ideal for students, teachers, and candidates preparing for competitive exams (CA, ACCA, ICMA, CSS, PMS, NTS, FPSC, PPSC, UPSC, etc.). Each question is followed by a clear solution and explanation to strengthen your concepts, improve problem-solving skills, and boost exam preparation. Perfect for practice, self-assessment, and revision in Accounting.

91. Trial Balance is prepared to check accuracy of

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Ledger account balances
Balance sheet balances
Income statement balances
Cash flow statement balances
✅ The correct answer is A.
A Trial Balance is a statement that shows the total of debit and credit balances of accounts. The total of debit amounts shall be equal to the credit amounts for the trial balance to tally. Hence, it verifies the arithmetical accuracy of the postings in the ledger accounts.

96. The allocation of owner’s private expenses to his/her business violates which of the following?

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Accrual concept
Matching concept
Separate business entity concept
Consistency concept
✅ The correct answer is C.
The allocation of owner’s private expenses to his/her business violates Separate business entity concept. The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses.

97. A current asset that is convertible to cash within 3 months can be referred to as

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Cash asset
Operating asset
Intangible assets
Cash equivalent
✅ The correct answer is D.
A current asset that is convertible to cash within 3 months can be referred to as Cash equivalent. Cash and cash equivalents refer to the line item on the balance sheet that reports the value of a company’s assets that are cash or can be converted into cash immediately.

99. Which of the following subsidiary books serves the purpose of ledger too, in addition to the recording of accounting transaction?

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Purchases book
Sales book
Bills receivable book
Cash Book
✅ The correct answer is D.
Cash Book serves the purpose of ledger too, in addition to the recording of accounting transaction. A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. Entries in the cash book are then posted into the general ledger.