Accounting MCQs for ICOM

By: Prof. Dr. Fazal Rehman | Last updated: May 21, 2025

1. : The transaction of Expenditure and Income account is recorded in:
(A) Revenue and Capital Nature of the accounting year
(B) Income
(C) Revenue nature of accounting year
(D) Capital nature of the previous year

2. : The goodwill is distributed to an old partner in:
(A) New ratio
(B) Sacrifice ratio
(C) Old ratio
(D) A and B

3. : The depreciation under the diminishing balance method is:
(A) Constant every year
(B) Changed every year
(C) Increase every year
(D) Decrease every year

4. : How capital is obtained:
(A) Creditors account
(B) Statement of affairs
(C) Debtors account
(D) Cash account

5. : The prospectus for shares can be issued only:
(A) Private company
(B) Public company
(C) Chartered company
(D) Shareholders

6. : The non-trading account is prepared in:
(A) Profit and loss account
(B) Expenditure and Income account
(C) Manufacturing account
(D) Trading account

7. : Opening balance is managed by preparing by:
(A) Opening statement of affairs
(B) Creditors
(C) Debtors
(D) Cash book

8. : Single entry system is usually prepared by:
(A) Partnership
(B) Government
(C) Company
(D) Consignor

9. : Depreciation occurs due to:
(A) Fall in the value of money
(B) To show true financial position
(C) Fall in the market value
(D) Physical wear and tear of an asset

10. : A company is formed by:
(A) Directors
(B) Owners
(C) Promoters
(D) Private

11. : The Debenture holders are:
(A) Customers
(B) Debtors
(C) Owners
(D) Creditors

12. : Provision is created for:
(A) Increase working capital
(B) Unknown liability
(C) Known liability
(D) A and B