Financial Accounting ICOM Part 01 Top 500 + MCQS Download Pdf Chapter No 04

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Chapters – 3

 Analysis of Business Transactions & Double Entry System

Encircle the most appropriate answer from the following four answers.

1  The best system of accounting in the modern world is:

  1. No entry system
  2. Multiple entry system
  3. Single entry system
  4. Double entry system

 2  Discount allowed is:

  1. An asset
  2. A liability
  3. A Revenue
  4. An expense

3Accounts which keep records of properties or things are

  1. Nominal accounts
  2. Personal accounts
  3. Real accounts
  4. None of these

4  Accounts which keep records of expenses, gains and losses are called;

  1.  Personal accounts
  2. Nominal accounts
  3. Real accounts
  4. None Of these

5  Purchase of furniture should be debited to:

  1. Cash account .
  2. Furniture account
  3. Purchase. account
  4. Creditors account

6  Rent salaries and wages paid are:

  1. Nominal accounts
  2. Real accounts
  3. Personal accounts
  4. None Of these

7  The claim of the supplier in the business is called:

  1. Expense
  2. Revenue
  3. Liability
  4. Assets

8  Ahmed’s account is an example of:

  1. Personal account
  2. Nominal account
  3. Real account
  4. None of these

9  How many categories of accounts are:

  1. Five
  2. Four
  3. Three
  4. Two

10 Goods purchased for cash from Babar should be debited to:

  1. Goods account
  2.  Cash account
  3.  Babar account
  4. Purchases account

11  Stationery account is an example of;

  1. Loss
  2.  Consumable asset
  3.  None of these
  4. expenses

12  Discount received from Ali should be debited to:

  1. Cash account
  2. Discount received account
  3. Ali account
  4. None Of these

13 Cash invested in business by Owner will increase

  1. cash
  2. Capital
  3. Liability
  4. Both 1 and 2

14 Discount allowed to Mr A Will be credited to:

  1. Cash account
  2. Mr A’s Account.
  3. None of these
  4. Discount allowed account

15 Cash and personal accounts maintained in

  1.  None of these
  2. Single entry system
  3. Double entry system
  4.  Multiple entry system

 16. Real and Nominal accounts are maintained under:

  1. Triple entry system
  2.  Single entry system
  3. Double entry system
  4. .Multiple entry system

17  Rent paid to the landlord for a portion of b “ld (d) Multiple “my system

  1. Building account
  2. Landlord account
  3.  Rent account
  4. Cash account

18  Purchased goods on credit increases the:

  1. Debtors
  2. Customers
  3. Creditors
  4. None of these

19, Purchased furniture on account will be credited to:

  1. Furniture account
  2. Creditor account
  3.  Purchased account
  4. Cash account

20, All expenses and losses should be debited and all gains should be credited“ is applied to:

  1. Real Accounts
  2. Nominal Accounts
  3. Personal Accounts
  4. None of these

21. Assets coming in should be debited and going out should be credited is applied to:

  1. Personal Accounts
  2.  Real Accounts
  3. Nominal Accounts ‘
  4. 1 and 2 Accounts

22   A person who receives the benefit should be debited and who gives the benefit should be credited is applied to:

  1. Personal Accounts
  2. Real Accounts
  3. Nominal Accounts
  4. 1 and 2 account

23  debit the increase

  1.  Assets, Revenue
  2. Assets, Expenses
  3. Assets, Liabilities
  4.  Assets, Capital

24  Credit the increase in

  1. Expenses, Capital and Liabilities
  2.  Assets, Expenses
  3. Revenue, Capital and Liability
  4. Assets, Capital andLiabilities

25. Debit the decrease in:

  1. Revenue, Capital and Liabilities
  2. Expenses, Capital and Liabilities,
  3. c) Assets. Capital and Liabilities
  4. Assets. Expenses

Credit the decrease in:

  1. Revenue and Liabilities
  2. Asset and Expenses\
  3. Expenses and Liabilities
  4. Assets and Liabilities

27. Sold merchandise on Credit to Ali Rs.7000 involves

  1. Real and Real accounts ,
  2. Nominal and Personal accounts
  3. Nominal and Real accounts
  4.  Real and Personal accounts;

28- Invested Rs.2. 00.000 Cash, Building Rs.7500 furniture rs 25000

  1. Real and Nominal accounts
  2. Real and Personal accounts .
  3. Personal and Nominal accounts
  4. Real accounts

29. Purchased Goods for Cash Rs.50000 subject to 10% trade discount involves:

  1.  Real and Personal accounts
  2. Real and Nominal accounts
  3. Personal and Nominal accounts
  4.  Nominal accounts

30. Withdrew Cash for personal use Rs.300 involves: , – ,_

  1.  Real and Proprietorship account
  2. Proprietorship and Personal account
  3. nominal account and real account
  4. Nominal and Personal accounts

31. Discount received is a:

  1. Revenue
  2. Liability
  3.  Expense
  4. Asset

32. A summary of transactions relating to a person or thing: ,

  1. Book-keeping
  2. Accountancy
  3. Accounting
  4. Accoun

Chapter -4

Journal :The original book of entry

Encircle the most appropriate answer from the following :


1. Journal is the book of:

  1. Original entry
  2. Preliminary entry
  3. First entry
  4. All of above

2. The entry in which more than one account is debited or credited is called

  1. Simple entry
  2. Single entry
  3. Compound entry
  4. Prime entry

3. The art of recording transaction in a journal is:

  1. ledger entry
  2. Posting
  3. Journalising
  4. Compound entry

4. Recording a transaction in the appropriate place of the concerned book of account is called

  1. statement
  2. Business document
  3. An entry
  4. None of these

5. A short explanation is written under each entry is called

  1. Posting
  2. Recording
  3. Narration
  4. Summarizing

6. The money with which proprietor starts his business is called

  1. Cash
  2. Capital
  3. Investment
  4. Aid

7. Goods purchase on credit from Tariq should be debited to

  1. Tariq account
  2. Cash account
  3. Purchases account
  4. Goods account

8. Purchased a motorcycle by the proprietor for his personal use should be debited:

  1. Purchases account
  2. Proprietor’s Personal account
  3. Motorcycle account
  4. Drawings account

9.  Goods sold on account to Rahar should be credited to

  1. rahar account
  2. Sales account
  3. Goods account
  4. Purchase account

10. Goods return to Ahmed should be debited to:

  1. Sales return account
  2. Purchases return account
  3. Ahmed account
  4. Purchases account

11. Goods returned by Zain should be debited to

  1. Purchase return account
  2. Sales return account
  3. Zain account
  4. Purchases account

12. When goods are given away as charity should be credited to

  1. Charity account
  2. Drawings account
  3. Free sample account
  4. Purchases account

13. Discount received from Ali should be debited to

  1. Discount received account
  2. Ali account
  3. Discount account
  4. Discount allowed

14. Salaries paid to Zubair should be debited to

  1. Salaries account
  2. Zubair account
  3. Cash account
  4. Bank account

15. A table lost by fire should be debited:

  1. Table account
  2. Loss by fire account
  3. Furniture account
  4. Purchases account

16. Gave away Charity in the form of goods should be debited to:

  1. Purchase account
  2. Expense account
  3. Cash account
  4. Charity Account

17. Credit signifies

  1. Increase in liability
  2. Increase in Capital
  3. Increase in revenue
  4. All of above

18. Purchase furniture from Saleem furnitures at list price of Rs.500 subject to 5% trade discount should be debited to:

  1. Purchase account
  2. Furniture,trade discount
  3. Furniture account
  4. Purchase, trade discount

19. Purchased office typewriter from Muzammal should be credited to:

  1. purchase account
  2. Muzammal account
  3. Office equipment account
  4. Cash account

20. Sales of goods to X for cashshould be debited to:

  1. Sales account
  2. X account
  3. Cash account
  4. None of these

21. Payment of Rs 50 to Rahim as wages for repairing furniture should be debited to:

  1. Furniture account
  2. Wages account
  3. Repair account
  4. Rahim account

22. Debit signifies

  1. Increase in asset account
  2. Decrease in liability account
  3. Decrease in capital account
  4. All of the above

23. Goods taken for personal use should be:

  1. Sale account
  2. Purchases account
  3. Drawings account
  4. Cash account.

24. A business transaction affects

  1. Maximum two account
  2. Maximum three account
  3. At least one account
  4. At least two accounts