Accounting Mcqs

Page No. 30

The process of recording in Journal is done


aTwo times in a year

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bOnce in a year

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cFrequently during the accounting period

✓


dAt the end of an accounting period

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Double entry implies that


aRecording entries in Journal

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bRecording entries in Ledger account

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cRecording two aspects of every transaction

✓


dRecording every transaction in books

✖



______ is the withdrawal of cash and goods by the owner of the business for his/her personal use


aDepreciation

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bDrawings

✓


cOutflow of cash

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dAppreciation

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View Answer Drawings

_______ is the gross inflow of economic benefits


aAssets

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bLiabilities

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cIncome

✓


dExpenses

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View Answer Income

An asset possesses which of the following?


aFuture economic benefits for the business

✓


bAll kinds of benefits for the business

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cExpenses for the business

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dMerits & Demerits for the business

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______ is a separate legal entity whose total capital can be divided into many shares


aPartnership

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bSole Proprietorship

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cCompany

✓


dNon-profit organization

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View Answer Company

Auditing refers to


aReporting the financial information

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bExamination of financial information

✓


cPreparation of financial statements

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dMaintaining the ledger accounts

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Bookkeeping mainly consists of which part of accounting process?


aAnalysing

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bPreparing financial statements

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cRecording financial information

✓


dAuditing the books of accounts

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The accounting process involves recording


aQuantifiable economic event

✓


bNon Quantifiable economic event

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cAll of them

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dNone of them

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A Master Budget consists of


aSales budget

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bProduction budget

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cMaterial budget

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dAll of the above

✓


View Answer All of the above

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