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Accounting MCQs FPSC NTS PPSC Past Papers Test Questions

  • Which of the following is a debit entry to a partner’s current account?

    (A) Salary
    (B) Drawings
    (C) Share of profit
    (D) Interest on capital

    The answer is: (B) Drawings

  • Salaries paid to partners is an:

    (A) Appropriation of profit among partners
    (B) Income of the partnership firm
    (C) Expense to partnership firm
    (D) None of the above

    The answer is: (A) Appropriation of profit among partners

  • Which of the following business entity is considered as a “legal person” in the eye of law?

    (A) Sole trader
    (B) Partnership
    (C) Company
    (D) All of the above

    The answer is: (C) Company

  • The main source(s) of Generally Accepted Accounting Principles (GAAP) is/are:

    (A) Company Law
    (B) Accounting standards
    (C) Both A and B
    (D) None of these

    The answer is: (C) Both A and B

  • What standards are used to prepare financial statements by most of the countries and companies

    (A) International Financial Reporting Standards
    (B) International Financial Accounting Standards
    (C) International Accounting & Auditing Standards
    (D) International Risk Reporting Standards

    The answer is: (A) International Financial Reporting Standards

  • The correct form of Accounting equation is

    (A) Assets + Liabilities = Equity
    (B) Assets – Liabilities = Equity
    (C) Assets – Receivable = Equity
    (D) Assets + Receivable = Equity

    The answer is: (B) Assets – Liabilities = Equity

  • A company sold goods worth $5,000 on 5 June and $10,000 on 28 June. What would be the total sale on the financial statement?

    Q. A company sold goods worth $5,000 on 5 June and $10,000 on 28 June. The company received the first payment on 25 June and second on 7 July. The company prepared the financial statement on 30 June. What would be the total sale on the financial statement?
    (A) $0
    (B) $5,000
    (C) $10,000
    (D) $15,000

    The answer is: (D) $15,000

  • Advance payments are recognized as

    (A) receivable
    (B) payable
    (C) bad debt
    (D) none of these

    The answer is: (A) receivable

  • In accounting, a debit entry usually represents

    (A) Assets and Expenses
    (B) Assets and Income
    (C) Liabilities and Income
    (D) Liabilities and Expenses

    The answer is: (A) Assets and Expenses
    In accounting, a debit entry usually represents assets and expenses.

  • Withdrawal of inventory by the owner for personal use is appeared in the trading account as a deduction from

    (A) sales
    (B) purchases
    (C) overdrafts
    (D) none of these

    The answer is: (B) purchases