Accounting mcqs

✅ The correct answer is B.
Accounting is the process of matching Revenues and costs. The matching concept is an accounting practice whereby firms recognize revenues and their related expenses in the same accounting period. Firms report “revenues,” that is, along with the “expenses” that brought them.

✅ 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.

✅ 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”.

✅ The correct answer is C.
A bill of exchange when drawn requires acceptance. By acceptance, the drawee engages himself to pay the amount from the bill of exchange to the person who will bear or hold it on the due term.

✅ The correct answer is D.
When a liability is reduced or decreased, it is recorded on the Left or debit side of the account.

✅ The correct answer is A.
The maximum amount with which a company is registered is called Authorized capital.

✅ The correct answer is C.
A document sent to customer when he returns the goods is called Credit note. A credit note or credit memo is a commercial document issued by a seller to a buyer.

✅ 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.

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

✅ 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.