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.

35. The charter of a company which defines the limitations and powers of the company is called

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Memorandum of Association
Articles of Association
Statutory Report
Certificate of Commencement
✅ The correct answer is A.
The memorandum of association of a company is the charter and defines the limitation of the power of the company established under Companies Act. Memorandum of Association is the most important document of a company. It states the objects for which the company is formed. It contains the rights, privileges and powers of the company. Hence it is called a charter of the company. It is treated as the constitution of the company. It determines the relationship between the company and the outsiders.

36. Which of the following is a double entry for deprecation expenses?

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Accumulated depreciation Debit and depreciation expenses Credit
Depreciation expenses Debit and accumulated depreciation Credit
Cash Debit and Depreciation expenses Credit
Depreciation expenses Debit and Cash Credit
✅ The correct answer is B.
Depreciation expenses Debit and accumulated depreciation Credit is a double entry for deprecation expenses.

37. Which of the following is time spann into which the total life of a business is divided for the purpose of preparing financial statements?

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Fiscal year
Calendar year
Accounting period
Accrual period
✅ The correct answer is C.
Accounting period is time spann into which the total life of a business is divided for the purpose of preparing financial statements. This period defines the time range over which business transactions are accumulated into financial statements, and is needed by investors so that they can compare the results of successive time periods.