50 MOST IMPORTANT Basic Accounting (MCQs) JKSSB FINANCE ACCOUNT ASSISTANT BY STUDY NORMS

Basic Accounting – Multiple Choice Questions (MCQs)

JKSSB FINANCE ACCOUNT ASSISTANT

BY STUDY NORMS

OUR ADDRESS:CANAL ROAD JAMMU(9149636808)

Q1. The revenues and expenses of a company are displayed in which statement?

A. Balance Sheet
B. Cash Flow Statement
C. Income Statement
D. None of the above

Answer: C) Income Statement

Q2. The main purpose of Financial Accounting is?

A. To provide financial information to shareholders
B. To maintain balance sheet
C. To minimize taxes
D. To keep track of liabilities

Answer: A) To provide financial information to shareholders

Q3. The expanded accounting equation is used by which statement?

A. Cash Flow Statement
B. Balance Sheet
C. Income Statement
D. None of the above

Answer: B) Balance Sheet

Q4. What type of balance do asset accounts have?

A. Contra
B. Credit
C. Debit
D. All of the above

Answer: C) Debit

Q5. The kind of debts which are needed to be repaid in a short term is known as?

A. Fixed Liabilities
B. Current Liabilities
C. Depreciating Assets
D. Intangible Assets

Answer: B) Current Liabilities

Q6. The account which increases equity is known as?

A. Debit Account
B. Credit Account
C. Revenue
D. Treasury Stock

Answer: C) Revenue

Q7. What are the long-term assets which do not have any physical existence?

A. Intangible Assets
B. Tangible Assets
C. Current Liabilities
D. Current Assets

Answer: A) Intangible Assets

Q8. What is the supporting evidence in a business transaction called?

A. Journal
B. Ledger
C. Voucher
D. Contra Voucher

Answer: C) Voucher

Q9. The Expenses, Profit & Loss of an organisation are recorded in which account?

A. Current Account
B. Personal Account
C. Nominal Account
D. None of the above

Answer: C) Nominal Account

Q10. Which person owes an amount to a business organisation for buying goods and services on credit?

A. Creditors
B. Debtors
C. Owner
D. None of the above

Answer: B) Debtors

Q11. When are balance sheets prepared?

A. Quarterly
B. Yearly
C. Monthly
D. None of the above

Answer: B) Yearly

Q12. What is Activity Ratio?

A. Ratios measuring ability to convert accounts into cash/sales
B. Ratios measuring ability to pay debts
C. Ratios assessing financial obligations
D. Profitability ratio

Answer: A

Q13. What is a Current Liability?

A. Assets expected to be sold within a year
B. Potential future liability
C. Short-term financial obligations due within one year
D. Long-term obligations

Answer: C

Q14. What is an operating cycle?

A. Time to convert inventory into cash
B. Time to buy goods, sell them and receive cash
C. Hiring process
D. Accounting process

Answer: B

Q15. What are Outstanding Expenses?

A. Expenses not paid off in balance sheet
B. Daily business purchases
C. Expenses due but not yet paid
D. None

Answer: C

Q16. What is Bank Overdraft?

A. Accounts payable document
B. Guaranteed negotiable instrument
C. Bill of exchange
D. Credit facility when account balance goes below zero

Answer: D

Q17. Which ratio protects the creditors?

A. Lower Debt-Equity Ratio
B. Liquidity Assets
C. Higher Inventory Ratio
D. ROI

Answer: A

Q18. Return on Investment (ROI) = ?

A. Net Sales × 100
B. Fixed Assets × 100
C. Total Assets × 100
D. None

Answer: C

Q19. Improper utilization of resources indicates?

A. Low ROI
B. Low Sales
C. High Sales
D. Depreciation

Answer: A

Q20. Budget prepared for advertising, salary & market analysis?

A. Operating Budget
B. Sales Expenditure Budget
C. Static Budget
D. Labour Budget

Answer: B

Q21. Master Budget includes?

A. Material Budget
B. Production Budget
C. Sales Budget
D. All of the above

Answer: D

Q22. Transaction is referred to as which event?

A. Political
B. Economic
C. Dividend
D. Cash

Answer: B

Q23. Recording financial transactions is part of?

A. Accounting
B. Book-Keeping
C. Data Entry
D. Journal

Answer: B

Q24. Examining financial information refers to?

A. Analysis
B. Auditing
C. Recording
D. Balance Sheet

Answer: B

Q25. Who is an external user of financial statements?

A. Shareholders
B. CEO
C. Manager
D. Creditor

Answer: D

Q26. Identifying an economic transaction is which phase of accounting cycle?

A. First
B. Second
C. Third
D. Last

Answer: A

Q27. What is a Company?

A. Social benefit entity
B. HUF business
C. Sole proprietorship
D. Legal entity formed by a group of individuals

Answer: D

Q28. What are Liabilities?

A. Resources
B. Expenses
C. Obligations
D. None

Answer: C

Q29. What is Income?

A. Asset
B. Obligation
C. Investment earning
D. Revenue from sale of goods/services

Answer: D

Q30. Asset possessed by business is shown under?

A. Liabilities
B. Assets
C. Revenues
D. Fixed Assets

Answer: B

Q31. Common characteristic of all assets?

A. Intangible
B. Long life
C. Future economic benefit
D. None

Answer: C

Q32. Capital + Liabilities = ?

A. Revenue
 

B. Assets