Accounts Aptitude Questions and Answers for MBA


1. Book of original entry is also known as ------------------.
Answer :   Journal

2. The act of keeping accounting records in a systematic manner is called ------
Answer :   Book keeping

3. The Double Entry system records both ----------- & ---------- aspects of a business transaction.
Answer :   Debit & Credit

4. The receiving aspect of a transaction is ---------------
Answer :  Debit

5. The golden rule for the Nominal account is --------------
Answer :  . Debit all expense and losses & Credit all incomes and gains

6. According to -------------- principle a business is treated as a separate entity that is distinct from its owner
Answer :  . Business Entity Concept

7. According to -------------- principle only those transactions which are capable of being expressed in terms of money are included in the accounting records
Answer :   Money Measurement Concept

8. According to ------------- principle the enterprise is normally viewed as a going concern that is, ontinuing in operation for the foreseeable future.
Answer :   Going concern principle

9. The Going concern concept is also known as -------------
Answer :   Continuity assumption

10. According to ---------------- principle revenues and costs are recogni zed as they are earned or incurred
Answer :   Accrual principle

11. The giving aspect of a transaction is --------------
Answer :   Credit

12. The language of the Business is ------------------
Answer :  . Accounting

13. ----------- is a document which serves as an evidence of a transaction -----------------
Answer :   Voucher

14. --------------- is the record made in the books of accounts in respect of a transaction or event
Answer :  Entry

15. Father of Double Entry of Book Keeping is -------------
Answer :   Luca Pacioli

16. Double Entry of Book Keeping was introduced in the year -----------
Answer :   1494

17. The most important branches of Accounting are -------------------
Answer :   Financial Accounting, Cost Accounting, Management Accounting

18. Under the Companies Act 1956, as companies are required to maintain the books of accounts according to ---------- basis of accounting.
Answer :  . Accrual

19. The basic object of Accounting is ------------------
Answer :   To maintain systematic record of financial transaction to ascertain profit / loss, to ascertain financial position

20. Accounting Standard- 1 deals with --------------
Answer :   Disclosure of Accounting Policies

21. Journal is also called as ----------- & --------------
Answer :   Book of Prime Entry & Book of Original Entry

22. The process of recording a transaction in the journal is called -----------------
Answer :   Journalising

23. An entry made in the journal is called a ---------------
Answer :  Journal Entry

24. ------------ is a principal book which contains all the accounts
Answer :  Ledger

25. ---------------- is the Book of Final Entry
Answer :  . Ledger

26. ----------- & ----------- are the basic financial statements.
Answer :   Trading, Profit and Loss accounts & Balance Sheet

27. Trading, Profit and Loss account shows ---------------- of the firm
Answer :   Financial Performance i.e. profit or loss

28. Balance Sheet shows --------------- of the firm.
Answer :   Financial Position

29. Trading, Profit and Loss account is prepared --------------
Answer :   For a period of time

30. Balance Sheet is prepared -------------------.
Answer :   At a point of time

31. -------------------- is an establishment for the conduct of trade and commerce.
Answer :   Business entity

32. The owner of the business is called as ------------------
Answer :   Proprietor

33. The amount invested by the proprietor in the business is ----------------.
Answer :   Capital

34. ------------------ is the value of cash or goods withdrawn from the business by the owner
Answer :  . Drawings

35. The commodities, articles or things in which a trader deals are ------------.
Answer :  Goods

36. The person who owes money to the business is ------------
Answer :   Debtor

37. The person to whom the business owes money is ------------
Answer :   Creditor

38. The proprieties or things owned by a business are -----------
Answer :  Assets

39. The assets which cannot be seen and touched are known as ----------- -----
Answer :  (Intangible assets)

40. Goodwill, Patents, Trade Marks etc. are --------------- assets
Answer :  Intangible

41. The assets which can be convertible into cash within one year are ------------- assets
Answer :   Current Assets

42. Cash, Bank, Debtors, Stock, and Bills Receivable etc. are -----------assets.
Answer :   Current Assets

43. Assets which are held with the business for a long time are ---------
Answer :   Fixed Assets

44. Accounting Standard - 6 deals with -------------------
Answer :   Depreciation

45. What is the Accounting equation -------------
Answer :  Assets = Capital +Liabilities

46. Which financial statement represents the accounting equation ----------------
Answer :  . Balance Sheet

47. As per Traditional Classification of Accounts, accounts can be classified into -------------
Answer :  Personal A/C, Real A/C, Nominal A/C

48. Accounts related to individuals and a firm is -----------------
Answer :   Personal A/C

49. An account related to assets is -----------------
Answer :   Real A/C

50. Accounts related to expenses, losses, incomes and gains is ---------
Answer :   Nominal A/C