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Introduction to Accounting - MCQs with Answers

Accounting is the core subject in the field of business and commerce. You can check your knowledge with the help of following Multiple Choice Questions (MCQs) with Answers.
Specially for Newbies -  For Students of I.COM Part -1. 
Chapter NO. 1 - Introduction to Accounting 
Introduction to Accounting - MCQs with Answers


1.The Pioneer of Accounting is:
            (a) Arthur Field House (b Gitman         (c) William Pickles        (d) Lucas Pacioli
2. The art of recording, classifying and summarizing is called:
            (a) Journalizing (b) Accounting (c) Bookkeeping (d) Record Keeping
3. Accounting records of a business enterprise is required by:
           (a) Management of the business (b) Outsiders            (c) All of the above             (d) None of them
4. To control the cost of production and distribution is the main field of:
(a) Financial Accounting           (b) Cost Accounting (c) Bookkeeping  (d) Auditing
5. Double Entry means:
(a) Entry for the  two aspects of books             (b) Entry at two dates
(c) Entry in two aspects of transaction              (d) All of the above
6. Bookkeeping provides the:
a) Primary information      (b) Secondary information) c) Final information           (d) None of them
7. Recording of the business transaction in a systematic way is called:
            (a)  Accounting (b) Recording   (c) Journalizing (d) Bookkeeping
8. Modern system of bookkeeping is:
a) Single entry system b) Double entry system c) Modern system d) British system
9. Double entry system of bookkeeping involves at least:
(a)  One accounts        (b) Two accounts (c)   Three Accounts                        (d) None of them
10. The supply of goods or services in exchange of money between two parties is known as:
A) Goods transactions (B) Service transactions
C) Business transactions (D) Credit transactions
11. The accounts in which the credit sale of merchandise or services are placed is known as:
A) Notes Receivable (B) Accounts Receivable
C) Amount Receivable (D) Discount Receivable
12.  The goods which are purchased for the purpose of resale are called:
A) Purchases (B) Merchandise
C) Goods/Inventory (D) All of the above
13. The main function of Accounting is to:
A) Record economic data (B) Provide informational basis for action
C) Classify and record business transactions (D) All of the above
14. Management accounting provides valuable services to management in performing:
A) All management functions (B) Controlling functions
C) Coordinating management functions (D) None of them
15. The owner of the business is called:
A) Proprietorship (B) Ownership
C) Industrialist (D) Proprietor
16. Promise to pay a certain amount is called:
A) Account Payable (B) Notes Payable
C) Amount Payable (D) Discount Payable
17. Cash invested by the owner is called:
A) Asset (B) Liabilities
C) Capital (D) Loan
Cash or goods taken away by the proprietor is called:
A) Drawings (B) Sales
C) Charity (D) Expense
18. The rights and claims of outsiders/ owner against the asset is called:
A) Owner’s Equity (B) Liabilities
C) Equities (D) None of them
19. The things of value possessed by the trader is called:
A) Merchandise (B) Assets
C) Stock (D) Purchases

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