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Accounting and Finance MCQs
Practice Accounting and Finance multiple-choice questions for Preston University competitive exams. Each question includes the correct answer and a short explanation, and past-paper questions are marked so you can revise both repeated and fresh material in one place.
4
5
6
7
ExplanationSubtract 5 from both sides to get 3x = 15, then divide by 3 to get x = 5.
20
25
30
35
Explanation0.15 * 200 = 30.
16 meters
24 meters
32 meters
64 meters
ExplanationIf area = s^2 = 64, then side s = 8. Perimeter = 4 * side = 4 * 8 = 32.
x = 6
x = 8
x = 4
x = 7
ExplanationExpanding gives 5x - 15 = 2x + 9. Subtracting 2x from both sides gives 3x - 15 = 9. Adding 15 gives 3x = 24, so x = 8.
5.6
5.2
4.8
6.0
ExplanationThe first five prime numbers are 2, 3, 5, 7, 11. The sum is 28. Average = 28 / 5 = 5.6.
$96
$100
$104
$110
ExplanationLet cost price be C. 1.20 * C = 120. C = 120 / 1.20 = 100.
2
4
8
16
ExplanationUsing exponent rules: 2^(3+4) / 2^5 = 2^7 / 2^5 = 2^(7-5) = 2^2 = 4.
15 sq cm
25 sq cm
50 sq cm
20 sq cm
ExplanationThe area of a triangle is calculated using the formula: 1/2 * base * height. 0.5 * 10 * 5 = 25.
4
5
6
7
ExplanationSubtract 7 from both sides to get 2x = 12, then divide by 2 to get x = 6.
9
15
21
23
ExplanationA prime number is a natural number greater than 1 that has no positive divisors other than 1 and itself. 23 fits this criteria.
is
are
were
been
ExplanationCollective nouns like 'team' take a singular verb when acting as a single unit.
Careless
Wise
Hasty
Loud
ExplanationPrudent means acting with or showing care and thought for the future; wise.
was
were
is
has been
ExplanationWhen using 'neither/nor', the verb agrees with the subject closest to it. Here, 'employees' is plural, so 'were' is correct.
Benevolent
Stingy
Altruistic
Lavish
ExplanationStingy means reluctant to give or spend, which is the opposite of generous.
The book, which I read yesterday, was excellent.
The book which I read yesterday, was excellent.
The book which I read yesterday was excellent.
The book, which I read yesterday was excellent.
ExplanationNon-restrictive clauses should be enclosed in commas.
To be very cold
To destroy something fragile
To initiate a conversation to ease tension
To win a competition
ExplanationThe idiom 'break the ice' refers to overcoming social awkwardness in a new situation.
go on
go ahead
carry on
hold on
Explanation'Go ahead' is the standard phrasal verb meaning to proceed with a plan.
Accommodate
Separate
Definately
Necessary
ExplanationThe correct spelling is 'Definitely'.
a
an
the
some
ExplanationAlthough 'honest' starts with a consonant letter, it begins with a vowel sound, therefore 'an' is used.
Permanent
Short-lived
Heavy
Ancient
ExplanationEphemeral means lasting for a very short time.
Venus
Mars
Jupiter
Saturn
ExplanationMars appears reddish due to iron oxide on its surface.
Ban Ki-moon
Kofi Annan
António Guterres
Javier Pérez de Cuéllar
ExplanationAntónio Guterres has been the Secretary-General of the UN since 2017.
World Bank
World Health Organization
International Monetary Fund
UNESCO
ExplanationThe WHO headquarters is located in Geneva, Switzerland.
Oxygen
Carbon Dioxide
Nitrogen
Hydrogen
ExplanationNitrogen makes up approximately 78% of the Earth's atmosphere.
John Maynard Keynes
Karl Marx
Adam Smith
Milton Friedman
ExplanationAdam Smith's book 'The Wealth of Nations' laid the foundations for modern classical economics.
Yuan
Won
Yen
Ringgit
ExplanationThe official currency of Japan is the Japanese Yen.
Amazon
Nile
Yangtze
Mississippi
ExplanationThe Nile is traditionally considered the longest river in the world.
Atlantic Ocean
Indian Ocean
Pacific Ocean
Arctic Ocean
ExplanationThe Pacific Ocean is the largest and deepest of Earth's oceanic divisions.
Egypt
Jordan
Saudi Arabia
Turkey
ExplanationPetra is a famous archaeological site in Jordan's southwestern desert.
Gold
Osmium
Oxygen
Iron
ExplanationOxygen is represented by the chemical symbol O on the periodic table.
Accounts Payable
Owner's Equity
Inventory
Bank Loan
ExplanationInventory is a resource owned by the business that is expected to provide future economic benefits.
Assets = Liabilities + Equity
Assets = Liabilities - Equity
Assets = Equity - Liabilities
Liabilities = Assets + Equity
ExplanationThe basic accounting equation represents that all assets are funded by either debt (liabilities) or owner's capital (equity).
Accounts Payable
Office Equipment
Land
Prepaid Insurance
ExplanationAccounts Payable represents short-term obligations to creditors, making it a current liability.
Summarizing
Posting
Journalizing
Auditing
ExplanationThe initial recording of financial transactions in the general journal is known as journalizing.
Revenue + Expenses
Assets - Liabilities
Revenue - Expenses
Assets + Equity
ExplanationNet Income is the result of subtracting all operating and non-operating expenses from total revenue.
To prove that total debits equal total credits
To determine net profit
To list all business owners
To show the value of inventory
ExplanationA trial balance is used to verify that the general ledger accounts are in balance after all transactions have been recorded.
Sole Proprietorship
Partnership
Corporation
Joint Venture
ExplanationA corporation is a legal entity that is distinct and separate from its shareholders.
Revenue
Net Profit
Equity
Expenses
ExplanationThe accounting equation states that Assets = Liabilities + Equity; therefore, Equity = Assets - Liabilities.
Cash
Inventory
Buildings
Goodwill
ExplanationGoodwill represents intangible value such as brand reputation, whereas cash, inventory, and buildings are tangible.
First-In, First-Out
Final-In, First-Out
First-In, Final-Out
Fully-In, Fully-Out
ExplanationFIFO is an inventory valuation method assuming the oldest items in stock are sold first.
A
B
C
Cannot be determined
ExplanationSince A > B and B > C, the order is A > B > C, making C the shortest.
20
24
32
64
ExplanationEach number is doubled to get the next number (2^1, 2^2, 2^3, 2^4, 2^5).
PSBOHF
PQBOHF
PSBOIF
OSBOHF
ExplanationThe pattern is moving each letter one position forward in the alphabet (A+1=B, P+1=Q, etc.).
60
70
80
100
ExplanationEach number in the sequence is doubled to get the next number.
Aunt
Sister
Mother
Grandmother
ExplanationThe 'only daughter of my father' is the woman herself. Therefore, his mother is the woman.
Piano
Guitar
Flute
Violin
ExplanationThe others are string instruments, whereas a flute is a woodwind instrument.
3km
5km
8km
0km
ExplanationThe path forms three sides of a rectangle. He is 3km East of his start point.
UVFTEBZ
VWFUEBZ
UVGTFCZ
VTFTEAZ
ExplanationEach letter is shifted forward by one (M->N, o->p, etc.). Applying this to TUESDAY results in UVFTEBZ.
18
20
21
25
ExplanationThe difference between terms increases by 1 each time (+2, +3, +4, +5, +6). 15 + 6 = 21.
21
42
49
14
ExplanationUse the combination formula n(n-1)/2. (7 * 6) / 2 = 21.
Frequently Asked Questions
Are these Accounting and Finance MCQs free?
Yes. Every Accounting and Finance MCQ on this page is free to practice, including the correct answer and explanation.
Do these include past-paper questions?
Yes — questions sourced from past papers are clearly marked with a "Past Paper" badge, alongside fresh practice questions.
Which exams do these Accounting and Finance MCQs help with?
They are aimed at Preston University and related Pakistani competitive exams that test Accounting and Finance.
How should I practice subject-wise MCQs?
Attempt each question first, then reveal the answer and read the explanation. Short, focused sessions on one subject work better than long unstructured reading.