( Best 50+ ) Book-Keeping and Accounting MCQ
Book-keeping and accounting MCQ :- Bookkeeping and accounting are two functions which are extremely important for every business organization. In the simplest of terms, bookkeeping is responsible for the recording of financial transactions whereas accounting is responsible for interpreting, classifying, analyzing, reporting, and summarizing the financial data.
Bookkeeping and accounting may appear to be the same profession to an untrained eye. This is because both accounting and bookkeeping deal with financial data, require basic accounting knowledge, and classify and generate reports using the financial transactions. At the same time, both these processes are inherently different and have their own sets of advantages. Read this article to understand the major differences between bookkeeping and accounting.
1. Book-keeping is mainly concerned with
(a) designing for systems of recording, classifying and summarising recorded data
(b) recording financial data relating to business operations
(c) interpreting data for internal and external users
(d) All of the above
Ans. b
2. The basic function of financial accounting is to
(a) record all business transactions
(b) interpret financial data
(c) assist the management in performing functions effectively
(d) None of the above
Ans. a
3. Which of the following is not an internal user of financial statements?
(a) Lenders
(b) Managers
(c) Board of Directors
(d) Employees
Ans. a
4. Which of the following will not be recorded in the books of accounts?
(a) Paid rent for office premises rs.10,000
(b) Paid commission for purchase of raw material rs. 200
(c) Purchased goods on credit rs. 15,000 for resale
(d) Resignation of manager Mr Mohan
Ans. d
5. Transactions are posted into ledger accounts from
(a) journal
(b) vouchers
(c) subsidiary books
(d) Both a and c
Ans. d
6. Petty cash book has a balance of rs.500. This represents
(a) a profit
(b) an asset
(c) a liability
(d) a loss
Ans. b
7. Purchase book is a part of
(a) ledger
(b) journal
(c) profit and loss account
(d) trading account
Ans. b
8. Sales book records the
(a) cash sales of goods
(b) credit sales of goods dealt in
(c) all sales of goods dealt in
(d) all sales of either goods or assets
Ans. b
9. Wages paid on the installation of machinery rs. 500, had been debited to wages account. It is an error of
(a) ommission
(b) commission
(c) principle
(d) compensating
Ans. c
10. A sale of rs. 2,500 was entered in the books as rs. 250, It is an error of
(a) principle
(b) partial ommission
(c) commission
(d) None of these
Ans. c
