Correct Answer:
D. Credit
Revenues increase equity, so they increase with credits.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
The normal balance of a revenue account is:
Related MCQs
When shares are issued at a price above their par value, the excess is credited to:
A.
Retained earnings
B.
Share premium
C.
Revenue
D.
Loan account
Correct answer is:
B. Share premium
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Unearned (deferred) revenue is reported as:
A.
An asset
B.
Revenue of the current period
C.
An expense
D.
A liability
Correct answer is:
D. A liability
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The future value of Rs. 10,000 invested for 2 years at 10% compound interest is:
A.
Rs. 12,100
B.
Rs. 12,000
C.
Rs. 11,000
D.
Rs. 10,200
Correct answer is:
A. Rs. 12,100
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Normal loss in a process is:
A.
A loss caused by negligence charged to profit and loss
B.
A gain from efficient production
C.
An expected and unavoidable loss that is absorbed by the good units
D.
A sunk cost
Correct answer is:
C. An expected and unavoidable loss that is absorbed by the good units
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Current assets are Rs. 250,000, inventory is Rs. 100,000 and current liabilities are Rs. 100,000. The quick ratio is:
A.
1.5
B.
2.5
C.
1.0
D.
0.4
Correct answer is:
A. 1.5
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The internal rate of return (IRR) is the discount rate at which:
A.
NPV is maximum
B.
Payback period is one year
C.
Accounting profit is zero
D.
NPV of the project equals zero
Correct answer is:
D. NPV of the project equals zero
Do you agree with this answer?
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