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Nature of Accounts – MCQs with Answers

When a person buys or sells goods or acts some business activities, it is said that a business transaction has occurred. We can define Business Transaction properly as, "An exchange of goods or services between persons for price is called a transaction." After the completion of transaction, it is necessary to record this transaction in the books of accounts. All the transactions are properly recorded after analyzing. A brief record of Transaction is called an "Account"

 Nature of Accounts- MCQs with Answers 

Nature of Accounts – MCQs with Answers
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1. The basic rule of bookkeeping, debit what comes in and credit what goes out is applicable to:
A) Personal accounts                                (B) Natural personal accounts
C) Nominal accounts                                (D) Real accounts
2. The claim of the outsiders against the assets of the business is called:
A) Loans                                                       (B) Sundry Creditors
C) Liabilities                                                (D) Capital
3. Nominal accounts are related to:
A) Assets                                                      (B) Expense, losses and income
C) Liabilities                                                 (D) Firm or business
4. The basic rule of bookkeeping debit the receiver and credit the giver:
A) Personal accounts                                 (B) Real accounts
C) Nominal accounts                                 (D) Valuation accounts
5. The rule of debit all expenses and losses and credit all gains and income is applicable to:
A) Real accounts                                          (B) Nominal accounts
C) Personal accounts                                  (D) Artificial Personal accounts
6. Personal accounts are related to:
A) Assets and liabilities                             (B) Expense, losses and income
C) Customers, creditors etc.                     (D) None of them
7. Real accounts are related to:
A) Assets                                                      (B) Expense, losses and income
C) Customers, creditors etc.                     (D) Liabilities
8. When an account represents certain person or persons then it is called:
A) Natural Personal accounts                   (B) Artificial Personal accounts
C) Real accounts                                         (D) Representative Personal accounts
9. Account relating to the persons or firms is called:
A) Personal accounts                                  (B) Real accounts
C) Nominal accounts                                 (D) All of the above
10. Accounts which keep the record of properties owned by a trader, are called:
A) Personal accounts                                 (B) Real accounts
C) Nominal accounts                                 (D) None of them
11. A debit represents an increase in:
A) An asset                                                  (B) An equity
C) Liability                                                 (D) Owner’s equity
12. The accounts, which have their existence even after the close of the year, are known as:
A) Nominal accounts                               (B) Real accounts
C) Personal accounts                              (D) Tangible accounts
13. If an account shows a debit balance, it represents:
A) Income                                                  (B) Expense
C) Liability                                                 (D) Capital
14. A credit represents by:
A) A decrease in an equity                      (B) A decrease in a liability
C) A decrease in an asset                        (D) A decrease in owner’s equity
15. Discount received is a:
A) Asset                                                     (B) Liability
C) Revenue                                              (D) Expenses
16. The entry system in which cash account and personal accounts are maintained is called:
A) Double Entry System                                           (B) Single Entry System
C) Accounting System                                               (D) None of these
17. The concept of recording dual aspect concept of business transactions is called:
A) Double Entry System Concept                          (B) Dual Recording Concept
C) Dual Aspect Concept                                           (D) None of these
18. Which normally has a credit balance:
A) Building Account                                                 (B) Purchase account
C) Real account                                                          (D) Sales account
19. How many categories of accounts are:
A) 2                                                                               (B) 3
C) 4                                                                               (D) 5
20. Real and nominal accounts are maintained under:
A) Single Entry System (B) Double Entry System
C) Triple Entry System (D) Multiple Entry System
21. Rent, Salaries and Wages paid are:
A) Real accounts (B) Personal accounts
C) Nominal accounts (D) None of these
22. Yasir’s account is an example of:
A) Real accounts (B) Personal accounts
C) Nominal accounts (D) None of these
23. Stationery account is an example of:
A) Consumable Asset (B) Loss
C) Expense (D) None of these
24. Cash and personal accounts are maintained in:
A) Double Entry System (B) Single Entry System
C) Multiple Entry System (D) None of these
25. Real and nominal accounts are maintained under:
A) Single Entry System (B) Double Entry System
C) Triple Entry System (D) Multiple Entry System
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Note: To Find Answers kindly click below to check your knowledge. Below you will find 20 MCQs from Chapter : Nature of Accounts - Part-I (1 to 20 MCQs')
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