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Fundamentals of Accounting MCQs for CS CSEET
Chapter-wise Fundamentals of Accounting MCQs with answers and explanations. Try the sample questions below, then practise a set of 10 with instant right/wrong.
Practise 10 Accounts MCQsSample Fundamentals of Accounting MCQs with answers
Q1 · Accounting Fundamentals
Which accounting concept assumes that a business is treated as separate from its owners?
- (a) Money measurement concept
- (b) Business entity concept
- (c) Going concern concept
- (d) Matching concept
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Answer: (b) Business entity concept
(b) is correct: the business entity concept treats the business as distinct from its owners. Going concern is about continuity, which is why it is not the answer.
Q2 · Bank Reconciliation Statement
A bank reconciliation statement is prepared mainly to reconcile which two balances?
- (a) Cash book balance and pass book balance
- (b) Purchase book and sales book
- (c) Debtors ledger and creditors ledger
- (d) Trial balance and balance sheet
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Answer: (a) Cash book balance and pass book balance
(a) is correct: the bank reconciliation statement explains the difference between the cash book balance and the pass book (bank statement) balance. The other pairs are unrelated to bank reconciliation.
Q3 · Depreciation Accounting
Which method of depreciation charges an equal amount of depreciation every year over the useful life of an asset?
- (a) Written down value method
- (b) Straight line method
- (c) Reducing balance method
- (d) Units of production method
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Answer: (b) Straight line method
(b) is correct: the straight line method spreads the depreciable cost evenly over the asset's useful life. The written down value method is the closest wrong choice because it applies a constant rate on a reducing balance instead.
Q4 · Accounting Fundamentals
Which accounting concept requires that revenue earned in a period be matched with the expenses incurred to earn that revenue?
- (a) Going concern concept
- (b) Matching concept
- (c) Money measurement concept
- (d) Dual aspect concept
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Answer: (b) Matching concept
(b) is correct: the matching concept requires expenses of a period to be set against the revenue of that period to find the true profit. Going concern only assumes the business will continue in the foreseeable future.
Q5 · Accounting Process
Under the modern (accounting equation) approach, an increase in a liability is recorded by:
- (a) Debiting the liability account
- (b) Crediting the liability account
- (c) Debiting the capital account
- (d) Crediting the asset account
Show answer ↓
Answer: (b) Crediting the liability account
(b) is correct: liabilities have a credit balance, so an increase is credited. Debiting the liability account would record a decrease.
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