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.

192. Purchase of office equipment for cash will be recorded on which side of a cash book?

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Receipts
Payments
Incomes
Expenditures
✅ The correct answer is B.
Purchase of office equipment for cash will be recorded on Payments side of a cash book. All transactions in the cash book have two sides: debit and credit. All cash receipts are recorded on the left-hand side, and all cash payments are recorded by date on the right-hand side.

196. Shares for which amount is paid by public are called ____ shares

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Authorized
Paid up
Bonus shares
All of the above
✅ The correct answer is B.
Shares for which amount is paid by public are called Paid up shares. Paid-Up Share Capital All paid-up capital is listed under the shareholders’ equity section of the issuing company’s balance sheet. Share capital can fall into four categories; paid-up share capital, called-up share capital, authorized share capital, and issued share capital.

197. Which of the following statements is incorrect regarding capital account?

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Debit increases the capital account balance
Credit increases the capital account balance
Fresh capital increases the capital account balance
Net income increases the capital account balance
✅ The correct answer is A.
Debit increases the capital account balance statements is incorrect regarding capital account. It decreases the capital account balance.

198. The concept that “an accountant shouldn’t anticipate profit, but must provide for all losses”

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Conservation concept
Consistency concept
Materiality concept
Reduction concept
✅ The correct answer is A.
Conservation concept states that “an accountant shouldn’t anticipate profit, but must provide for all losses”. The concept that an accountant shouldn’t anticipate profit, but must provide for all losses is known as The conservatism concept.

199. Under which depreciation method, the amount of depreciation expenses remains same throughtout the life of the asset?

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Straight line method
Reducing balance method
Number of units produced method
Machine hours method
✅ The correct answer is A.
Under Straight line method, the amount of depreciation expenses remains same throughtout the life of the asset. In a straight line depreciation method, it is assumed that the asset uniformly depreciates over its useful life.