Accounting MCQ on Single Entry System
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1. In single entry system records of which accounts are maintained :
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) Both (a) and (b)
Ans. (d) Both (a) and (b)
2. Which of the following entities generally prepare their books of accounts under single entry system?
(a) Joint stock companies
(b) Sole traders
(c) Government organisations
(d) Not-for-profit organisations
Ans. (b) Sole traders
3. Which of the following is mainly prepared for ascertaining capital in the beginning?
(a) Debtors’ account
(b) Cash account
(c) Creditors’ account
(d) Opening statement of affairs
Ans. (d) Opening statement of affairs
4. In the absence of introduction of fresh capital, when closing capital is more than opening
capital, it indicates:
(a) Loss
(b) Profit
(c) No profit, no loss
(d) None of the above
Ans. (b) Profit
5. From incomplete records, it is not always possible to prepare:
(a) Ledger
(b) Trial balance
(c) Balance Sheet
(d) All of the above
Ans. (d) All of the above
6. In the absence of drawings, when closing capital is less than opening capital, it indicates:
(a) Profit
(b) Loss
(c) No profit, no Loss
(d) None of the above
Ans. (b) Loss
7. Generally, which of the following accounts is maintained under single entry system:
(a) Expenses Account
(b) Cash Account
(c) Furniture Account
(d) Income Account
Ans. (b) Cash Account
8. Which of the following is not an advantage of single entry system:
(a) Requirement of only basic knowledge
(b) Flexibility
(c) Economical
(d) Incomplete System
Ans. (d) Incomplete System
9. Under single entry system’, capitals can be calculated by preparing:
(a) Balance Sheet
(b) Statement of Affair
(c) Income and Expenditure Account
(d) Cash Account
Ans. (b) Statement of Affair
10. To find out the profit, which of the following is added to closing capital ?
(a) Drawings
(b) Opening Capital
(c) Additional Capital
(d) None of the above
Ans. (a) Drawings
11. Which of the following is deducted from closing capital to find out profit under single
entry system?
(a) Additional Capital
(b) Drawings
(c) Both of the above
(d) None of the above
Ans. (a) Additional Capital
12. The system of accounting which is not based on dual aspect of accounting is :
(a) Double Entry system
(b) Single entry system
(c) No entry system
(d) None of the above
Ans. (b) Single entry system
13. One account which is always maintained in single entry system is :
(a) Building Account
(b) Machine Account
(c) Cash Account
(d) None of the above
Ans. (c) Cash Account
14. which one of the following accounts which is maintained in single entry system:
(a) Debtors Account
(b) Creditors Account
(c) Nominal Account
(d) None of the above
Ans. (b) Creditors Account
15. Which one of the following systems is applicable income tax purposes:
(a) Single entry system
(b) Double entry system
(c) Both of the above
(d) None of the above
Ans. (b) Double entry system
