Final Accounts MCQs

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on November 16, 2021

Complete this quick test on Final Accounts to help you prepare for your exams and interviews. This exam will help you clarify the main concepts.

In this quiz, there are 20 multiple choice questions (MCQs). Answering each question will allow you to progress to the next question.

If you find some questions difficult, we advise that you thoroughly read the Final Accounts chapter in the financial accounting section of the website.

1. Statements prepared to indicate the profit or loss and financial position of the business are called:

2. The account showing the gross profit or gross loss of the business is called:

3. A trading account is prepared to record:

4. The debit side of a trading account records:

5. Closing stock is recorded in the:

6. Profit and loss account shows the:

7. Operating expenses are recorded in the:

8. Expenses relating to sale of goods are shown in:

9. The profit and loss account is prepared:

10. Carriage outward is an example of:

11. Which of the following are indirect expenses?

12. Income earned from other than routine activities is called:

13. Discount received is an example of:

14. Which of the following are indirect income?

15. The credit side of a profit and loss account records:

16. The balance sheet is a statement of:

17. The balance sheet discloses the financial position of a business:

18. Properties, items, and receivables with certain value that are owned by a business are called:

19. Any physical item with monetary value is:

20. Assets that physically exist are called:


True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, his interview on CBS, or check out his speaker profile on the CFA Institute website.

17 thoughts on “Final Accounts MCQs”

  1. I cant understand how operating expenses can be recorded in the balance sheet.
    Which are indirect expense of the followings?
    Salaries Expenses
    Insurance Expenses
    Rent Income
    All of these
    HOW IT ANSWER GIVEN All of these

  2. I think the following two mcqs need correction.
    7. Operating expenses are recorded in:
    Trading Account
    Profit and Loss Account (should be)
    Balance Sheet (shouldn’t be)
    All of these
    11. Which are indirect expense of the followings?
    Salaries Expenses (this one)
    Insurance Expenses
    Rent Income
    All of these (not this one)

  3. The Answer to Question 7 is wrong. Operating Expenses are recorded in the Profit and Loss Account, not in the Balance Sheet.


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