Accounting Cycle

MCQs 1 To 10


1. Double entry bookkeeping means that?

2. Which one the following document is prepared for documentary evidence by business?

3. The basic sequence in the accounting process can best be described as?

4. Revenue is generally recognized being earned at the point of time when?

5. The accounting system, in which accounting entries are made on the basis of amount having become due for payment or receipt, is known as?

6. Bookkeeping is mainly concerned with?

7. Which one of the following system of recording transaction has a dual aspect concept of accounting?

8. The documents relating to purchase of asset must be authorized by?

9. Accrual-basis of accounting?

10. A manufacturer is considering the point at which a transaction can be recognized within its profit and loss account. At which of the following stages is this permitted?


>> Read Accounting Cycle.


MCQs 11 To 20


11. A company sold Rs. 400,000 of merchandise for cash and Rs. 120,000 of merchandise to credit customers who will pay for the merchandise in a later time period. How much revenue should be reported on the income statement of the current time period?

12. Voucher is used to record transactions that do not affect cash or bank?

13. Items such as a sales slip, a check, a bill, or invoices are examples of?

14. In the purchasing procedure which document will usually follow the goods received note?

15. Which of the following is an advice of employee earning?

16. A Journal entry which requires more than two accounts is called?

17. Accounting which recognizes an event as the transaction when cash is received or paid?

18. Which of the following presents key aspects of the process of accounting in the correct chronological order?

19. Losses normally have?

20. Which of the following is not a voucher?


>> Practice Journal Entry Problems and Solutions.


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