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.

41. Petty cash fund is supposed to be replenished

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Every year
Every half year
Every year
At the end of every accounting period
✅ The correct answer is D.
Petty cash fund is supposed to be replenished at the end of every accounting period. Replenish means to return the amount of actual cash in the petty cash box back to the amount appearing in the general ledger account Petty Cash. This is done whenever the amount of actual cash in the petty cash box is low and at the end of each accounting period.

46. Which reserve is not shown in the Balance sheet?

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Secret reserve
General reserve
Capital reserve
All of the above
✅ The correct answer is A.
Secret reserve is not shown in the Balance sheet. The term secret reserve refers to a reserve the existence of which is not disclosed in the Balance Sheet. It can be said that there is a surplus of assets over liabilities and that surplus is not disclosed or shown by the Balance Sheet.

47. A cheque returned by bank marked “NSF” means that

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Bank can’t verify your identity
There are not sufficient funds in your account
Cheque has been forged
Cheque can’t be cashed being illegal
✅ The correct answer is B.
A cheque returned by bank marked “NSF” means that There are not sufficient funds in your account. Non-sufficient funds (NSF) is a term used in the banking industry to indicate that a cheque cannot be honored because insufficient funds are available in the account on which the instrument was drawn.

48. Office equipment is a ______ asset for a computer manufacturer and the same office equipment is a ____ asset for a company that deals in these equipments

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Current, fixed
Fixed, intangible
Tangible, intangible
Fixed, current
✅ The correct answer is D.
Office equipment is a Fixed asset for a computer manufacturer and the same office equipment is a current asset for a company that deals in these equipments.

50. The party who sends the goods for sales on fixed commission basis is known as

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Drawer
Drawee
Payee
Consignor
✅ The correct answer is D.
The party who sends the goods for sales on fixed commission basis is known as Consignor. Person or firm (usually the seller) who delivers a consignment to a carrier for transporting it to a consignee (usually the buyer) named in the transportation documents.