Accounting Multiple Choice Questions and Answers


1._________ is a business language.

  1. Business
  2. Accounting
  3. Money
  4. Trading

Ans – 2
Explain : Accounting is a business language.

2. Which language to communicate financial transactions and their results?

  1. Business
  2. Accounting
  3. Money
  4. Trading

Ans – 2
Explain : Accounting is a business language.

3.Indian scholar named Kautilya alias Chanakya introduced the accounting concepts in his book __________.

  1. Ankganit
  2. Arthashastra
  3. Sankhyashastra
  4. None of these

Ans – 2
Explain : Indian scholar named Kautilya alias Chanakya introduced the accounting concepts in his book Arthashastra.

4.Which of the following is not Objectives and Scope of Accounting?

  1. To keep systematic records
  2. To ascertain profitability
  3. To assist in decision-making
  4. None of these

Ans – 4

5._______refers to the specific tasks involved in completing an accounting process.

  1. Management
  2. Accounting
  3. Accounting cycle
  4. None of these

Ans – 4
Explain : Accounting cycle refers to the specific tasks involved in completing an accounting process.


6.Which of the following is length of accounting cycle?

  1. Monthly
  2. quarterly
  3. Yearly
  4. All of these

Ans – 4
Explain : Monthly,Quarterly,Yearly can be length of the accounting cycle.

7.According to _______, the business and the owner of the business are two different entities.

  1. Business Entity
  2. Money Measurement
  3. Going Concern
  4. None of these

Ans – 1
Explain : According to Business Entity Concept , the business and the owner of the business are two different entities.

8.According to __________ concept, “we can book only those transactions in our accounting record which can be measured in monetary terms.”

  1. Business Entity
  2. Money Measurement
  3. Going Concern
  4. None of these

Ans – 2
Explain : According to Money Measurement Concept, “we can book only those transactions in our accounting record which can be measured in monetary terms.”

9.There must be a double entry to complete any financial transaction, means debit should be always equal to credit.This is called,

  1. Cost Concept
  2. Dual Aspect Concept
  3. Going Concern Concept
  4. Money Measurement Concept

Ans – 2
Explain : There must be a double entry to complete any financial transaction, means debit should be always equal to credit.This is called,Dual Aspect Concept.

10.Which is based on the accounting period concept.

  1. Matching concept
  2. Dual Aspect Concept
  3. Going Concern Concept
  4. Cost Concept

Ans – 1
Explain : Matching concept is based on the accounting period concept.



Leave a Reply

Your email address will not be published. Required fields are marked *