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.

163. The assets which have a limited useful life are termed as

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Limited assets
Depreciable assets
Unlimited assets
None of the above
✅ The correct answer is B.
The assets which have a limited useful life are termed as Depreciable assets. The assets which are held by a business for the production and supply of goods and services, expected to be used for more than an accounting year and have a limited useful life are known as Depreciable Assets.

165. Bank Reconciliation statement is prepared by

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Accountant of business
Manager of business
Controller of business
Accountant of the bank
✅ The correct answer is A.
Bank Reconciliation statement is prepared by Accountant of business. Bank reconciliation statement is generally prepared by the company accountant or the bookkeeper with the purpose to compare the bank’s records with your own company records. It is done on monthly basis whenever bank statement arrives.

166. Which of the following capital is taken up by the general public?

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Issued capital
Subscribed capital
Authorized capital
Reserve capital
✅ The correct answer is A.
Issued capital is taken up by the general public. Such capital can be offered to the public at a later date. It is that part of subscribed capital, which is called by the company to pay on shares allotted. It is not necessary for the company to call for the entire amount on shares subscribed for by shareholders.

168. In which of the following condition, a company will have positive working capital?

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If current assets>current liabilities
If current assets
If current assets = current liabilities
Answer: Option A
✅ The correct answer is A.
If current assets>current liabilities, a company will have positive working capital. When a company has more current assets than current liabilities, it has positive working capital.

170. The normal balance of capital account is

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Credit balance
Debit balance
Cash balance
Neither debit nor credit balance
✅ The correct answer is A.
The normal balance of capital account is Credit balance. Normal balance is the side where the balance of the account is normally found. Asset accounts normally have debit balances, while liabilities and capital normally have credit balances. Income has a normal credit balance since it increases capital .