Accounting MCQs MCQs - Accounting Practice | PakExamPoint

Practise Accounting MCQs MCQs in Accounting. Attempt multiple-choice questions, check answers and revise related subtopics.

Accounting MCQs MCQs and revision practice

Study Accounting MCQs through multiple-choice questions in Accounting. This subtopic contains 326 practice questions. Read the wording carefully, compare the options and attempt an answer before checking the solution in learning mode.

Use these Accounting MCQs MCQs to identify the facts, rules or methods you need to revise. Where an explanation is available, work through it and write down why your chosen option was correct or incorrect. Revisit difficult questions after reviewing your notes, then use exam mode for timed practice.

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Accounting MCQs: questions and answer review

Try each question before opening its answer. Record the concept behind each mistake and revisit it during your next practice session.

1. What do KPIs determine about initiatives?

Check answer and explanation

Answer: Their success

Explanation - KPIs (Key Performance Indicators) are measurable values that show how effectively a company or individual is achieving key business objectives. - They help assess the success or failure of initiatives. - The other options (attendance when sick, vacation time, or popularity) are not related to KPIs.

2. Excess of sale over cost of goods in an accounting period is termed as ______?

اکاؤنٹنگ کی مدت میں سامان کی لاگت سے زیادہ فروخت کو ______ کہا جاتا ہے؟

Check answer and explanation

Answer: Gross Profit

Explanation Gross profit is the difference between sales revenue and the cost of goods sold (COGS) in an accounting period. It represents the profit before deducting operating expenses, taxes, and other indirect costs.

3. An accounting approach, in which the expected benefits exceed the expected cost is classified as ______?

ایک اکاؤنٹنگ نقطہ نظر ، جس میں متوقع فوائد متوقع لاگت سے زیادہ ہیں ______ کے طور پر درجہ بندی کیا گیا ہے؟

Check answer and explanation

Answer: Cost-benefit approach

Explanation The cost-benefit approach evaluates whether the benefits of an action or investment outweigh the associated costs. It is commonly used in accounting and economics for decision-making to ensure efficiency and value.

4. Residual value is the ______?

بقایا قیمت ______ ہے؟

Check answer and explanation

Answer: Value of the asset at the end of its useful life

Explanation Residual value is the estimated amount an asset will be worth after its useful life ends. It is used in depreciation calculations to determine the asset’s net cost over time.

5. Which of the following terms describes the set of values, beliefs, rules, language, and institutions held by a specific group of people?

مندرجہ ذیل میں سے کون سی شرائط اقدار ، عقائد ، قواعد ، زبان ، اور لوگوں کے ایک مخصوص گروہ کے ذریعہ رکھے ہوئے اداروں کے سیٹ کو بیان کرتی ہے؟

Check answer and explanation

Answer: Culture

Explanation Culture includes shared values, beliefs, customs, language, and social norms of a specific group. It influences behavior, communication, and societal structure.

6. Bonds with longer maturities generally have ______ interest rate risk.

لمبی پختگی والے بانڈز میں عام طور پر ______ سود کی شرح کا خطرہ ہوتا ہے۔

Check answer and explanation

Answer: Higher

Explanation Bonds with longer maturities are more sensitive to interest rate changes, increasing their risk. When interest rates rise , the price of long-term bonds drops more compared to short-term bonds.

7. Should a petrol station owner be allowed to charge Rupees 500 a litter, if his store is the only store with petrol?

Check answer and explanation

Answer: No this is dishonest business practices

Explanation Charging excessively high prices in an emergency or when there are no alternatives is considered price gouging, which is unethical and often illegal. Fair business practices require reasonable pricing, especially in situations where customers have no other options.

8. Which of the following instrument is a hybrid of Demand Draft and Pay Order?

مندرجہ ذیل میں سے کون سا آلہ ڈیمانڈ ڈرافٹ اور پے آرڈر کا ہائبرڈ ہے؟

Check answer and explanation

Answer: Double Crossed Cheque

Explanation A double crossed cheque combines features of a demand draft and a pay order. Can only be deposited into a bank account , not cashed directly. Provides higher security for fund transfers. Used for safe and guaranteed payments. Last verified on 15-02-2026

9. NAFTA stands for _____?

نافٹا کا مطلب کیا ہے؟

Check answer and explanation

Answer: North American Free Trade Agreement

Explanation The NAFTA was signed by Canada, Mexico, and the United States in 1992. North American Free Trade Agreement full form of NAFTA. This agreement created one of the largest free-trade zones.

10. The concept of reliability refers to _______?

وشوسنییتا کا تصور _______ سے مراد ہے؟

Check answer and explanation

Answer: Consistency of scores

Explanation Reliability in measurement means obtaining consistent results when the same test or assessment is repeated. It ensures that scores remain stable and accurate over time, minimizing errors.

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