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.

251. Amortization of unidentified intangible assets is in terms of

by
Conservatism concept
Materiality concept
Matching concept
Cost concept
✅ The correct answer is C.
Amortization of unidentified intangible assets is in terms of Matching concept. In the Matching Concept of Accounting, all the expenses matched with the revenue of an accounting period should only be taken into consideration.

252. If debit balances = credit balances, trial balance only shows or checks the _________ and it does not indicate that no errors were made during recording and posting.

by
Arithmetic accuracy
Errors of commission
Omissions of economic events
Understatements of balances
✅ The correct answer is A.
If debit balances = credit balances, trial balance only shows or checks the Arithmetic accuracy and it does not indicate that no errors were made during recording and posting.

253. Revenue earned but not yet received by the business is known as

by
Contra asset revenue
Accrued expenses
Accrued revenue
Unearned revenue
✅ The correct answer is C.
Revenue earned but not yet received by the business is known as Accrued revenue. Accrued income is very important in accounting because companies receive advances for their goods or services all the time. To prevent overstating certain accounts, companies need to differentiate between the revenue that they have earned versus revenue that they have not earned yet.

254. _____ will be credited if goods are given as charity

by
Cash
Charity
Purchases
Sales
✅ The correct answer is C.
Purchases will be credited if goods are given as charity. When accounting for goods given as charity, purchases are reduced with the exact cost of goods contributed. The amount is reduced from purchases in the trading account. It is shown as an expense on the debit side of the income statement.

258. Cash book records

by
Cash payments
Cash Receipts
Cash payments and cash receipts
Neither cash payments nor cash receipts
✅ The correct answer is C.
Cash book records Cash payments and cash receipts. A Cash Book is a type of subsidiary book where cash (or) bank receipts and cash (or) bank payments made during a period are recorded in a chronological order.

259. Double entry accounting system includes

by
Accrual accounting only
Cash accounting only
Both cash and accrual accounting
None of the above
✅ The correct answer is C.
Double entry accounting system includes both cash and accrual accounting. Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts.