Q. Which of the following is true?
✅ Correct Answer: (D)
The purchase of an asset such as office equipment, either for cash or on credit, does not change the Owners‘ Equity
Financial Accounting MCQs and Notes
Q. Withdrawals by proprietor would
✅ Correct Answer: (A)
Reduce both Assets and Owner‘s Equity
Q. Which of the following transactions would cause a change in ―owners‘ equity‖?
✅ Correct Answer: (B)
Payment of Dividends and Unprofitable Operations
Q. Withdrawal of goods from stock by the owner of the business for personal use should be recorded by
✅ Correct Answer: (C)
Debiting Drawings Account and Crediting Stock Account
Q. When Fixed Assets are sold
✅ Correct Answer: (D)
There is no change in the Total Assets
Q. Goods returned from X is entered as
✅ Correct Answer: (C)
Debit Sales Return A/c; Credit X A/c
Q. The process of transfer of entries from day book to ledgers is called _______________
✅ Correct Answer: (D)
Ledger posting
Q. In which of the following statement opening stock is shown?
✅ Correct Answer: (A)
Profit and loss account (Right Answer) ;
Q. The ____________ in a ledger helps in locating the accounts contained in it
✅ Correct Answer: (A)
Folio ;