Chapter-1: Introduction to Accounting : MCQ

Chapter-1: Introduction to Accounting

Exercise

Multiple Choice Questions(MCQ)

1. Accounting -

[a] Describe relationship with one another in society

[b] Describe about production systems

[c] Keep accounts of goods purchase and sales

[d] Recording; Classifying and Explaining of all financial transactions

2. How the desired result can be achieved of Business organization?

[a] By purchasing assets

[b] By taking correct decision

[c] By controlling Expenses

[d] By purchasing Goods

3. Internal users of accounting information in a Business

i) Owner

ii) Manager

iii) Loan providing Bank

Which one is correct?

[a] i

[b] ii

[c] i & ii

[d] i, ii & iii

4. Science & Technology –

[a] Reduce Accounting

[b] Makes Accounting expensive

[c] Restrict the movement of Accounting

[d] Improve Accounting

5. In which name does Accounting appraise?

[a] Accounting systems

[b] Information systems

[c] Auditing systems

[d] Statement systems

6. Expected profit of an organization can be achieved by –

[a] Increasing Assets

[b] Decreasing Liabilities

[c] Controlling Expenditures

[d] Increasing Expenditure

7. Example of service providing non-profit organization -

i) Education institute

ii) Advertising institute

iii) Computer repairing centre

Which one is correct?

[a] i

[b] ii & iii

[c] i & ii

[d] i & iii

8. Principal objective of Accounting is -

i) Determination of financial result

ii) Control expenditure

iii) Ascertainment of financial position

Which one is correct?

[a] i

[b] ii & iii

[c] i & ii

[d] i & iii

9. A business can make contribution to the society & environment by

i) Using foreign raw materials in production

ii) Using local raw materials in production

iii) Giving scholarship among poor & meritorious students

Which one is correct?

[a] ii

[b] ii & iii

[c] i & ii

[d] i & iii

Answer question no. 10 and 11 from the following information:

Dr. Rakib hasan keeps proper records of his clinic’s financial transactions. It is possible to calculate his personal income tax easily and quickly. Therefore, income tax authority is satisfied to the process of his keeping accounts.

10. Whose objective is to record transactions correctly?

[a] Business’s

[b] Debtors and creditors

[c] Recording Transactions

[d] Accounting’s

11. Properly recorded accounts of Dr. Hasan’s clinic will help to –

i) Increase sales

ii) Increase values

iii) Determine tax

Which one is correct of the following?

[a] i

[b] ii

[c] ii & iii

[d] i & ii

[Answer Key : 1(d), 2(c), 3(c), 4(d), 5(b), 6(c), 7(a)' 8(d), 9(b), 10(d), 11(c)]