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.

205. The parties to joint venture are called

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Friends
Principal and agent
Partners
Co-ventures
✅ The correct answer is D.
The parties to joint venture are called Co-ventures. With individuals, when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are “co-venturers”.

206. The term _______ is generally used for the depreciation of natural resources

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Amortization
Depletion
Appreciation
Disposal value
✅ The correct answer is B.
The term Depletion is generally used for the depreciation of natural resources. Depletion is an accrual accounting technique used to allocate the cost of extracting natural resources such as timber, minerals, and oil from the earth.

207. Suspense account given in the trial balance will be entered in the

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Manufacturing account
Balance sheet
Trading account
Profit and loss account
✅ The correct answer is B.
Suspense account given in the trial balance will be entered in the Balance sheet. If the Trial Balance does not agree, the difference is put to Suspense A/c. Suspense A/c on credit side of Trial Balance will be entered on the liabilities side of Balance Sheet. Suspense A/c on debit side of Trial Balance will be entered on the assets side of Balance Sheet.

210. The going concern concept assumes that

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The entity continue running for forseeable future
The entity continue running until the end of accounting period
The entity will close its operation in 10 years
The entity can’t be liquidated
✅ The correct answer is A.
The going concern concept assumes that the entity continue running for forseeable future. The going concern principle is the assumption that an entity will remain in business for the foreseeable future.