Dear aspirants, Here are the Top 30 Most Important MCQs on Introduction to Accountancy, specially prepared by Exam Waves for JKSSB FAA 2026 Exam aspirants. Test your concepts, strengthen your preparation, improve accuracy, and master important Accountancy topics for better exam performance.
Q1. Which of the following statements correctly describe the basic meaning and functions of Accounting?
- Accounting includes identifying business transactions of a financial character.
- Recording means entering transactions in chronological order.
- Classifying means grouping transactions of a similar type at one place.
- Communicating means providing the final accounting results to the concerned parties.
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q2. Consider the following statements regarding the early history of Accounting:
- Ancient civilizations such as Babylon and Egypt recorded transactions around 4000 B.C.
- Payments of wages and taxes were recorded on clay tablets.
- Romans used a daybook for recording receipts and payments.
- More systematic record-keeping methods developed between the 13th and 15th centuries.
Which of the statements given above are correct?
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q3. Arrange the following developments in the history of Accounting in chronological order, beginning with the earliest:
- First National US Accounting Society was established.
- Luca Pacioli published his famous work containing a chapter on the Double Entry System.
- Double Entry records appeared in Genoa.
- Formal accounting profession emerged in Scotland.
A) 3 → 2 → 4 → 1
B) 2 → 3 → 4 → 1
C) 3 → 4 → 2 → 1
D) 2 → 4 → 3 → 1
Answer: A
Q4. Which of the following statements correctly describe Luca Pacioli and the development of Accounting?
- Luca Pacioli is known as the Father of Accounting.
- His famous work was published in 1494.
- His book contained a chapter on the Double Entry System.
- Double Entry records first appeared in Genoa in 1340 AD.
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q5. Match List I with List II and select the correct answer:
| List I | List II |
|---|---|
| A. Identifying | 1. Grouping similar transactions |
| B. Recording | 2. Providing results to concerned parties |
| C. Classifying | 3. Finding financial transactions |
| D. Communicating | 4. Entering transactions in chronological order |
A) A-3, B-4, C-1, D-2
B) A-4, B-3, C-2, D-1
C) A-3, B-1, C-4, D-2
D) A-2, B-4, C-1, D-3
Answer: A
Q6. Which of the following statements correctly describe the objectives of Accounting?
- It helps maintain a systematic record of transactions.
- It helps calculate profit or loss.
- It helps ascertain the financial position of a business.
- It provides information to concerned parties.
A) 1, 2 and 3 only
B) 1, 3 and 4 only
C) 2 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q7. Match the qualitative characteristics of accounting information with their correct meanings:
| List I | List II |
|---|---|
| A. Reliability | 1. Information should help in decision-making |
| B. Relevance | 2. Information should be easy to understand |
| C. Understandability | 3. Information should be free from errors and bias |
| D. Comparability | 4. Information should allow comparison with past performance |
A) A-3, B-1, C-2, D-4
B) A-1, B-3, C-4, D-2
C) A-3, B-2, C-1, D-4
D) A-4, B-1, C-2, D-3
Answer: A
Q8. Which of the following statements correctly describe the Business Entity and Money Measurement Concepts?
- Under the Business Entity Concept, the business has a separate identity.
- Transactions are recorded from the business point of view rather than the owner’s point of view.
- Under the Money Measurement Concept, only transactions measurable in money are recorded.
- Money Measurement requires every non-financial event to be recorded in accounting books.
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: B
Q9. Which of the following combinations is correctly matched?
- Going Concern Concept — Business is expected to continue for an indefinite period.
- Accounting Period Concept — Financial statements are prepared for a particular period.
- Dual Aspect Concept — Every transaction has two aspects.
- Consistency Concept — Same accounting practice should be followed consistently each year.
A) 1 and 3 only
B) 1, 2 and 4 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q10. Consider the following statements regarding the Matching, Historical Cost and Prudence concepts:
- Matching Concept requires revenue to be matched with corresponding expenses.
- Historical Cost Concept relates to assets continuing to reflect purchase value less depreciation.
- Conservation Concept is also called Prudence.
- Prudence states that anticipated profits should be recorded immediately.
Which of the above are correct?
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: B
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Q11. Arrange the following stages of the Accounting Cycle in their correct order:
- Trial Balance
- Transactions
- Financial Statements
- General Ledger
- General Journal
A) 2 → 5 → 4 → 1 → 3
B) 2 → 4 → 5 → 1 → 3
C) 5 → 2 → 4 → 3 → 1
D) 2 → 5 → 1 → 4 → 3
Answer: A
Q12. Which of the following statements correctly distinguish Bookkeeping from Accounting?
- Bookkeeping is the first step of the accounting process.
- Bookkeeping is mainly concerned with recording.
- Accounting is concerned with the summarising phase.
- Managerial decisions can be taken with the help of Accounting.
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q13. Which of the following statements regarding Bookkeeping are correct?
- It is the recording phase of the accounting system.
- It is generally done by junior staff or clerks.
- It includes journaling and ledger processing.
- Managerial decisions can be taken directly on the basis of bookkeeping alone.
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: B
Q14. Which of the following are listed as branches of Accounting in the article?
- Financial Accounting
- Cost Accounting
- Management Accounting
- Social Responsibility Accounting
- Human Resource Accounting
A) 1, 2 and 3 only
B) 1, 2, 3 and 4 only
C) 2, 3, 4 and 5 only
D) 1, 2, 3, 4 and 5
Answer: D
Q15. Which of the following correctly classifies the users of Accounting Information?
- Owners — Internal User
- Management — Internal User
- Investors — External User
- Tax Authorities — External User
- Employees — External User
A) 1, 2 and 3 only
B) 1, 2, 3 and 4 only
C) 2, 3, 4 and 5 only
D) 1, 2, 3, 4 and 5
Answer: B
Q16. Which of the following statements correctly distinguish the Single Entry System from the Double Entry System?
- Under Single Entry, all accounts are not fully recorded.
- Under Single Entry, Personal Accounts and Cash Book are maintained.
- Under Double Entry, every transaction has two aspects.
- Under Double Entry, every debit has an equal and corresponding credit.
A) 1 and 2 only
B) 2, 3 and 4 only
C) 1, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q17. Which of the following statements correctly describe Capital?
- Capital is the amount invested by the proprietor in the business.
- Capital is also known as Owner’s Equity.
- Capital is also known as Net Worth.
- Capital can be calculated by deducting liabilities from assets.
A) 1, 2 and 3 only
B) 1, 2 and 4 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q18. A business has total assets of ₹1,50,000 and total liabilities of ₹65,000. Based on the formula for Capital given in the article, what will be the amount of Capital?
A) ₹2,15,000
B) ₹85,000
C) ₹65,000
D) ₹1,50,000
Answer: B
Q19. Consider the following items:
- Cash
- Machinery
- Goodwill
- Patent
- Building
- Stock
Which of the following correctly identifies the intangible assets?
A) 1 and 6 only
B) 2 and 5 only
C) 3 and 4 only
D) 2, 3 and 5 only
Answer: C
Q20. Which of the following statements regarding Current and Non-Current Assets are correct?
- Current Assets can be converted into cash within one year.
- Cash, stock and debtors are examples of Current Assets.
- Non-Current Assets are not meant for resale.
- Building and machinery are examples of Tangible Non-Current Assets.
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q21. Match List I with List II:
| List I | List II |
|---|---|
| A. Current Asset | 1. Debenture |
| B. Intangible Asset | 2. Debtor |
| C. Current Liability | 3. Goodwill |
| D. Non-Current Liability | 4. Bills Payable |
A) A-2, B-3, C-4, D-1
B) A-3, B-2, C-1, D-4
C) A-2, B-4, C-3, D-1
D) A-4, B-3, C-2, D-1
Answer: A
Q22. Which of the following statements correctly describe Drawings and Depreciation?
- Drawings may consist of cash or goods withdrawn by the proprietor for personal use.
- Drawings reduce the owner’s capital.
- Depreciation represents a decrease in the value of an asset due to wear and tear.
- Depreciation is described as a non-cash expense.
A) 1, 2 and 3 only
B) 1, 3 and 4 only
C) 2 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q23. Consider the following statements regarding different types of expenditure:
- Capital Expenditure may be incurred for acquiring permanent assets.
- Capital Expenditure may be incurred for improving existing assets.
- Revenue Expenditure is directly related to business purposes and is shown in Trading and Profit & Loss Account.
- Deferred Revenue Expenditure is written off over more than one accounting period.
Which of the above are correct?
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q24. Match the following types of expenditure with the examples given in the article:
| List I | List II |
|---|---|
| A. Capital Expenditure | 1. Rent |
| B. Revenue Expenditure | 2. Purchase of machine |
| C. Deferred Revenue Expenditure | 3. Advertising expenses |
| D. Expense | 4. Salary |
A) A-2, B-1, C-3, D-4
B) A-1, B-2, C-4, D-3
C) A-2, B-3, C-1, D-4
D) A-4, B-1, C-3, D-2
Answer: A
Q25. Which of the following statements correctly distinguish Prepaid Expense from Outstanding Expense?
- Prepaid Expense is an expense paid in advance.
- Prepaid Expense is shown on the asset side of the Balance Sheet.
- Outstanding Expense is an expense not yet paid although its benefit has already been received.
- Outstanding Expense is shown as a liability.
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q26. A business has revenue of ₹1,20,000 and expenses of ₹75,000. Using the relationship between Income, Revenue and Expenses given in the article, what will be its Income?
A) ₹1,95,000
B) ₹75,000
C) ₹45,000
D) ₹55,000
Answer: C
Q27. Which of the following statements correctly describe Debtors, Creditors and Bad Debts?
- Debtors are persons or entities that owe money to the business.
- Creditors are persons or firms to whom the business owes money.
- Bad Debt is an amount that has become irrecoverable from a debtor.
- Sundry Debtors represent the total amounts of debtors collectively.
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q28. Match List I with List II and select the correct answer:
| List I | List II |
|---|---|
| A. Purchase | 1. Goods sold earlier are returned by customer |
| B. Purchase Return | 2. Buying goods for resale |
| C. Sales Return | 3. Purchased goods returned to supplier |
| D. Voucher | 4. Documentary evidence supporting a transaction |
A) A-2, B-3, C-1, D-4
B) A-3, B-2, C-4, D-1
C) A-2, B-1, C-3, D-4
D) A-4, B-3, C-1, D-2
Answer: A
Q29. Which of the following statements correctly describe Trade Discount and Cash Discount?
- Trade Discount is given by the seller to the buyer for buying more goods.
- Trade Discount is not recorded in accounting books.
- Cash Discount is given for prompt payment.
- Cash Discount is recorded in accounting books.
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q30. Consider the following pairs relating to important accounting terms:
- Capital — Amount invested by proprietor
- Asset — Anything owned by the business and used for business operations
- Liability — Amount that the business owes to others
- Drawings — Cash or goods withdrawn by proprietor for personal use
- Depreciation — Decrease in value of an asset due to wear and tear
- Inventory — Includes raw material and finished goods
How many of the above pairs are correctly matched?
A) Only three
B) Only four
C) Only five
D) All six
Answer: D
Conclusion
We hope these Top 30 Most Important MCQs on Introduction to Accountancy help you revise key concepts, test your knowledge, and improve your accuracy for the JKSSB FAA 2026 Exam. Keep practicing regularly with Exam Waves, strengthen your fundamentals, and move one step closer to your selection.
