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Multiple Choice Questions in Accounting

For writing multiple choice questions  in accounting, I am taking my March 2011's written accounting topics as reference. I have already written multiple choice questions in accounting on the basis of April 2011's accounting topics. You can read it at here. I think there are two benefits of writing multiple choice questions in accounting.

One is : It is useful for increasing your reasoning in accounting.

Second is : By checking old reference of accounting topic, you can improve your accounting again if you had forgotten  to study that accounting topics.

Question 1. Which tools of management accounting is useful for check the solvency of company?

(a) Budgetary Control

(b) Decision Accounting

(c) MIS

(d) Analysis of Financial Statements

Reference for answer this multiple choice question : Tools of Management Accounting

Question 2. Which is the advantage of management accounting?

(a) To make financial statements

(b) To simplify the financial statements

(c) To combine two or more financial statements for making consolidated financial statement

(d) To Spit many years financial statements in yearly financial statements.

Reference for answer this multiple choice question : Advantages of Management Accounting

Question 3. What is main function of management accounting?

(a) Fund flow analysis

(b) Social cost and benefit analysis of a project

(c) Forex management

(d) To take managerial decisions

Reference for answer this multiple choice question : Functions of Management Accounting

Question 4. What is Arrears?

(a) It is advance payment

(b) It is payable amount before due date.

(c) It is unpaid payment or debt on its due date

(d) It is difference between advance payment and payable amount

Reference for answer this multiple choice question :  Arrears

Question 5. What is Aging of Accounts?

(a) It is to classify the transactions.

(b) It is to classify the accounts on the basis of nature of company.

(c) It is to classify the accounts on the basis of different ledgers.

(d) It is to classify the accounts on the basis of billing or due date.

Reference for answer this multiple choice question :  What is Aging of Accounts?

Question 6. What is Adjunct Account?

(a) It is liability account.

(b) It is asset account.

(c) It is expense account.

(d) It is income account.

Reference for answer this multiple choice question : What is Adjunct Account?

Question 7. Formula for  Calculating  Cash from Operations

(a) Net Profit + non cash and non -operating items which are debited in profit and loss account - Cash and Operating items which are credited in profit and loss account

(b) Cash sales - ( Cash purchase + Cash operating expenses )

(c) Cash Sales - Credit Purchase - Non Cash and Non-operating expenses.

(d) Credit Sales - Cash purchase - cash operating expenses

Reference for answer this multiple choice question : How to Calculate Cash from Operations

Question 8. Is Depreciation a source of Fund?

(a) Yes

(b) No

(c) Question of Debate

(d) Depreciation on all assets is source of fund except depreciation on furniture.

Reference for answer this multiple choice question :  Is Depreciation a source of Fund

Question 9. How to Record Accounting Data in mobile Google Docs?

(a) By clicking + Add

(b) By clicking - Add

(c) By clicking + New

(d) By Clicking - New

Reference for answer this multiple choice question : How to Use Spreadsheet of Google Docs in Mobile


Question 10. Why was Accounting Education started?

(a) To help the students, accountants and others

(b) To share accounting, finance and educational  knowledge

(c) To solve accounting problems

(d) All of above

Reference for answer this multiple choice question : Prof. Vinod Kumar Interview with News Media

Related : Accounting Test Online  

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Accounting Education: Multiple Choice Questions in Accounting
Multiple Choice Questions in Accounting
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Accounting Education
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