Quiz  /  Accounting Class 10 MCQ Questions With Answers

  • 1. 
    Which of the following are Assets?

  • Bank Account
  • Vehicles
  • Furniture and fittings
  • All of above

  • 2. 
    When preparing Financial Statements which monetary measurement basis states that the accounting records should be based on the original cost of the transaction.

  • Current Value
  • Replacement Value
  • Realisation Value
  • Historical Cost

  • 3. 
    Concept: When a business activity is large enough to impact business decisions, it should be recorded clearly in the financial statements

  • realization of revenue
  • materiality
  • unit of measurement
  • consistent reporting

  • 4. 
    Assets - Liabilities = Equity

  • TRUE
  • FALSE

  • 5. 
    Equity can also be called Capital

  • TRUE
  • FALSE

  • 6. 
    Concept: Business transactions are reported in numbers that have common values. Meaning all reporting should be done in terms of money

  • Unit of measurement
  • historical cost
  • materiality
  • matching expenses with revenue

  • 7. 
    Concept: The actual amount paid for merchandise or other items purchased is recorded, even though the value of the asset may be different

  • unit of measurement
  • historical cost
  • matching expenses with revenue
  • consistent reporting

  • 8. 
    Concept: Financial statements are prepared with the expectation that business will remain in operation indefinately

  • going concern
  • materiality
  • accounting period cycle
  • matching revenue with expenses

  • 9. 
    Concept: The same accounting procedures must be followed in the same way each accounting period

  • accounting period cycle
  • objective evidence
  • consistent reporting
  • materiality

  • 10. 
    When the business is owed money it is called

  • Accounts Receivable
  • Account Payable

  • 11. 
    The accounting period of a business is separated into activitiess that help the business keep its accounting records in an orderly fashion.

  • Accounting Period Cycle
  • Source Document
  • Fiscal Year
  • None of the Above

  • 12. 
    Concept: Financial information is reported for a specific period of time on financial statements.

  • Matching Expenses with Revenue
  • Accounting Period Cycle
  • Business Entity

  • 13. 
    The Matching Concept states that revenue should only be recognised when it is earned and not received. If a company sells goods on credit in March and receives payment in May, this would be shown in the sales figure for?

  • The month the goods were sold.
  • The month the goods were produced.
  • The month the cash is creceived from the customer.
  • None of the above.

  • 14. 
    When a business owner invests in the business

  • This increases equity
  • This decreases equity

  • 15. 
    Concept: Revenue is recorded at the same time goods or services are sold.

  • realization of revenue
  • the revenue principle
  • going concern
  • historical cost

  • 16. 
    Concept: When a source document is prepared for each transaction

  • going concern
  • materiality
  • realization of revenue
  • objective evidence

  • 17. 
    Jeff's Construction, LLC bought a piece of equipment in 2001 for P 10,000. Today this piece of equipment is only worth P 2,000. Jeff would still report the equipment at its purchase price of P 10,000, less depreciation, even though its current fair market value is only P 2,000.

  • Historical Principle
  • Business Entity
  • Accrual Principle
  • Adequate Disclosure Principle

  • 18. 
    When the owner takes money out the business for personal use it is called

  • Drawings
  • Withdrawal
  • Investment
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