Financial Accounting Mcqs are Collected from different Past papers.These Mcqs are very helpful for the Preparation of various posts of, Accountant and for Cost Accountant. Senior Auditor, Junior Audito Complete course in 7 parts so don’t miss any part

3.  1.The process of recording is done
 A) Two times a year
 B) once a year
 C) Frequently during the accounting period
 D) At the end of a accounting period

4.  2.General journal is a book of _______ entries
 A) First
 B) Original
 C) Secondary
 D) Generic

5.  3. The process of recording transactions in
different journals is called
 A) Posting
 B) Entry making
 C) Adjusting
 D) Journalizing

6.  4. Every business transaction affects at least
________ accounts
 A) One
 B) Two
 C) Three
 D) Infinite

7.  5. Discount allowed is a kind of deduction
from
 A) Account payable
 B) Account receivable
 C) Cash account
 D) Discount account

8.  6. The other name of journal is
 A) Ledger
 B) T account
 C) Day book
 D) Cash book

9.  7. A journal entry in which two or more
account is debited or credited is referred as
 A) Journal entry
 B) Multi entry
 C) Additional entry
 D) Compound entry

10.  8. The term 2/10-n/30 implies that ______ %
discount will be given if the payment is made
within days or full amount is receivable within
30 days
 A) 2,10
 B) 10,2
 C) 10,30
 D) 3,15

11. 
9. Goods returned by customer should be
debited to which of the following accounts?
 A) Sales income account
 B) Sales account
 C) Return inward account
 D) Expenses account

12. 
10. Discount allowed is
 A) Expense of business
 B) Income of business
 C) Loss of business
 D) Abnormal loss of business

13.  11. _________ is the evidence that a
transaction took place
 A) Source documents
 B) Ledger
 C) Bonds
 D) Journals

14.  12. Which of the following will be debited if a
business purchases goods on credit?
 A) Cash
 B) Debtor
 C) Creditor
 D) Purchases

15.  12. Which of the following will be debited if a
business purchases goods on credit?
 A) Cash
 B) Debtor
 C) Creditor
 D) Purchases

16.  13. Which of the following accounts will be
debited if the business's owner withdraws
cash from business for his personal use?
 A) Drawings
 B) Cash
 C) Business
 D) Stock

17. 14. Journals are also referred as
 A) Book of entries
 B) Book of original entries
 C) T account
 D) Books of economic event

18.  15.The standard format of journal does not
include which of the following?
 A) Assets column
 B) Date column
 C) Description column
 D) Amount column

19.  16. In which of the following orders data is
entered in journal?
 A) Alphabetical order
 B) Numeric order
 C) Bullets order
 D) Chronological order

20.  17. Which of the following accounts will be
credited if a company purchases building for
cash?
 A) Capital account
 B) Fixed assets account
 C) Building account
 D) Cash accoun

21.  18. Discount for quick repayment of debt is
normally referred as
 A) Trade discount
 B) Prompt payment discount
 C) Cash discount
 D) Bulk discount


22.  19. The first step in accounting process is
 A) Recording the transaction
 B) Identifying the transaction
 C) Posting the transaction
 D) Preparing the source documents

23.  20. A chart of accounts generally start with
which of the following types of accounts?
 A) Assets accounts
 B) liability accounts
 C) Cash accounts
 D) Revenue accounts

24.  ANSWER:
 1 C 2 B 3 D 4 B 5 B
 6 C 7 D 8 A 9 C 10 A
 11 A 12 D 13A 14 B 15 A
 16 D 17 D 18 C 19 B 20 A.