(A) Salary
(B) Drawings
(C) Share of profit
(D) Interest on capital
The answer is: (B) Drawings
Category: Accounting MCQs FPSC NTS PPSC Past Papers Test Questions
Accounting MCQs quiz test questions with answers. Basic accounting theory and concepts, cost accounting and financial accounting MCQ for test preparation. FPSC NTS PPSC accounting past papers solved test questions and answers.
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