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Capital University of Science and Technology (CUST)11 سوالات

Accounting Principles MCQs

Practice Accounting Principles multiple-choice questions for Capital University of Science and Technology (CUST) 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.

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Revenue Recognition Principle
Matching Principle
Cost Principle
Going Concern Principle
وضاحتThe matching principle requires that expenses be recognized in the same period as the related revenues to accurately measure profit.
Debit Office Supplies, Credit Cash
Debit Accounts Payable, Credit Office Supplies
Debit Office Supplies, Credit Accounts Payable
Debit Cash, Credit Office Supplies
وضاحتPurchasing supplies on credit increases assets (Supplies) and increases liabilities (Accounts Payable).
Historical Cost Principle
Going Concern Principle
Consistency Principle
Full Disclosure Principle
وضاحتThe Going Concern Principle assumes a business will operate indefinitely, allowing assets to be recorded at cost rather than liquidation value.
Materiality Principle
Revenue Recognition Principle
Objectivity Principle
Prudence Principle
وضاحتMateriality allows accountants to ignore strictly rigorous accounting for insignificant amounts if it does not mislead stakeholders.
When the cash is received from the customer
When the performance obligation is satisfied
When the invoice is printed
At the end of the fiscal year
وضاحتRevenue recognition under accrual accounting occurs when control of goods or services is transferred to the customer, regardless of cash timing.
Income Statement
Cash Flow Statement
Balance Sheet
Statement of Retained Earnings
وضاحتThe Balance Sheet reports assets, liabilities, and equity at a single specific date.
Substance over form
Consistency principle
Full disclosure principle
Historical cost principle
وضاحتThis principle ensures that the accounting treatment reflects the reality of the transaction, even if the legal structure suggests otherwise.
Objectivity
Consistency
Revenue recognition
Conservatism
وضاحتThe consistency principle requires that once an accounting method is chosen, it should be followed consistently across periods to allow for comparability.
Prudence (Conservatism)
Matching
Economic Entity
Monetary Unit
وضاحتThe prudence principle dictates that when uncertainty exists, one should choose the option that does not overstate assets or income.
Business entity assumption
Periodicity assumption
Going concern assumption
Accrual assumption
وضاحتThe going concern assumption posits that the business will continue its operations indefinitely, justifying the valuation of assets at historical cost.
Full disclosure
Cost-benefit
Relevance
Reliability
وضاحتFull disclosure ensures that financial reports provide all necessary info to prevent users from being misled.

Frequently Asked Questions

Are these Accounting Principles MCQs free?

Yes. Every Accounting Principles 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 Principles MCQs help with?

They are aimed at Capital University of Science and Technology (CUST) and related Pakistani competitive exams that test Accounting Principles.

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.

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