Accountant Recruitment Exam Questions 2026 – Practice Set of 30 MCQs

Are you preparing for the Accountant Recruitment Exam 2026? Success in this competitive exam requires not only knowledge of accounting principles but also practice with exam-oriented questions. To help aspirants, we have compiled 30 important Accountant exam questions with answers covering accounting, finance, and related concepts.

This practice set is ideal for candidates preparing for State and Central Government Accountant posts, PSU Accountant exams, and other finance-related competitive exams.

Accountant Recruitment Exam Questions 2026 -Set 1 (15 Questions)

Question No. 1: Which account is debited when cash is withdrawn from business for personal use?
A. Cash Account
B. Drawings Account
C. Capital Account
D. Bank Account

Correct Answer: Option B – Drawings Account

Question No. 2: The process of recording transactions in chronological order is known as
A. Posting
B. Journalising
C. Casting
D. Balancing

Correct Answer: Option B – Journalising

Question No. 3: Which book is called the book of original entry?
A. Ledger
B. Trial Balance
C. Journal
D. Balance Sheet

Correct Answer: Option C – Journal

Question No. 4: Goods withdrawn by proprietor for personal use are credited to
A. Purchases Account
B. Sales Account
C. Drawings Account
D. Capital Account

Correct Answer: Option A – Purchases Account

Question No. 5: Which of the following is not a nominal account?
A. Salary
B. Rent
C. Interest
D. Machinery

Correct Answer: Option D – Machinery

Question No. 6: The debit balance of Profit and Loss Account indicates
A. Net profit
B. Gross profit
C. Net loss
D. Gross loss

Correct Answer: Option C – Net loss

Question No. 7: Which of the following is a current asset?
A. Furniture
B. Debtors
C. Building
D. Machinery

Correct Answer: Option B – Debtors

Question No. 8: Which account will be credited when rent is received in advance?
A. Rent Account
B. Outstanding Rent
C. Advance Rent
D. Cash Account

Correct Answer: Option C – Advance Rent

Question No. 9: The excess of assets over liabilities is known as
A. Capital
B. Revenue
C. Profit
D. Drawings

Correct Answer: Option A – Capital

Question No. 10: Which of the following is not included in trial balance?
A. Assets
B. Liabilities
C. Capital
D. Stock at the end

Correct Answer: Option D – Stock at the end

Question No. 11: When goods are sold on credit, which account is debited?
A. Sales Account
B. Debtors Account
C. Cash Account
D. Purchases Account

Correct Answer: Option B – Debtors Account

Question No. 12: Which financial statement shows profit or loss of a business?
A. Balance Sheet
B. Cash Flow Statement
C. Profit and Loss Account
D. Trial Balance

Correct Answer: Option C – Profit and Loss Account

Question No. 13: The total of debit side of trial balance is ₹50,000 and credit side is ₹48,000. The difference of ₹2,000 is shown in
A. Capital Account
B. Suspense Account
C. Profit and Loss Account
D. Cash Account

Correct Answer: Option B – Suspense Account

Question No. 14: Which of the following is a fictitious asset?
A. Preliminary expenses
B. Goodwill
C. Debtors
D. Stock

Correct Answer: Option A – Preliminary expenses

Question No. 15: The balance sheet is prepared to show
A. Profit earned
B. Cash position
C. Financial position
D. Income earned

Correct Answer: Option C – Financial position

Accountant Recruitment Exam Questions 2026 -Set 2 (15 Questions)

Question 1

The basic accounting equation is:

• A) Assets + Liabilities = Capital

• B) Assets = Liabilities + Capital

• C) Assets – Liabilities = Capital

• D) Assets × Liabilities = Capital

✅ Correct Answer: Option B

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Question 2

Depreciation is charged on:

• A) Current assets

• B) Fixed assets

• C) Liabilities

• D) Capital

✅ Correct Answer: Option B

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Question 3

Which accounting principle requires consistency in methods?

• A) Conservatism

• B) Matching

• C) Consistency

• D) Materiality

✅ Correct Answer: Option C

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Question 4

The double-entry system of accounting was introduced by:

• A) Luca Pacioli

• B) Adam Smith

• C) Alfred Marshall

• D) John Maynard Keynes

✅ Correct Answer: Option A

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Question 5

Which account type is increased by debit entries?

• A) Liabilities

• B) Expenses

• C) Capital

• D) Revenue

✅ Correct Answer: Option B

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Question 6

A trial balance is prepared to:

• A) Record transactions

• B) Check arithmetical accuracy of ledger accounts

• C) Calculate profit or loss

• D) Prepare balance sheet

✅ Correct Answer: Option B

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Question 7

The accrual system of accounting records:

• A) Only cash transactions

• B) Only non-cash transactions

• C) Transactions when they occur, not when cash is received or paid

• D) Only credit transactions

✅ Correct Answer: Option C

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Question 8

Which financial statement shows a company’s financial position at a point in time?

• A) Income Statement

• B) Cash Flow Statement

• C) Balance Sheet

• D) Trial Balance

✅ Correct Answer: Option C

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Question 9

Outstanding expenses are:

• A) Expenses paid in advance

• B) Expenses not yet paid but incurred

• C) Capital expenses

• D) Irrecoverable expenses

✅ Correct Answer: Option B

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Question 10

Which of the following is an example of a liability?

• A) Bank Loan

• B) Office Building

• C) Cash in Hand

• D) Furniture

✅ Correct Answer: Option A

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Question 11

Capital employed means:

• A) Total assets – Liabilities

• B) Total liabilities – Assets

• C) Owner’s equity + long-term liabilities

• D) Fixed assets × Current assets

✅ Correct Answer: Option C

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Question 12

Which account shows profit or loss of the business?

• A) Trading Account

• B) Profit & Loss Account

• C) Balance Sheet

• D) Cash Account

✅ Correct Answer: Option B

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Question 13

Purchase return is recorded in:

• A) Purchases Account

• B) Sales Account

• C) Purchase Returns Account

• D) Cash Account

✅ Correct Answer: Option C

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Question 14

Which document is used as evidence for a cash payment?

• A) Receipt

• B) Invoice

• C) Voucher

• D) Ledger

✅ Correct Answer: Option C

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Question 15

Which financial statement helps in analyzing cash inflows and outflows?

• A) Profit & Loss Account

• B) Balance Sheet

• C) Cash Flow Statement

• D) Trial Balance

✅ Correct Answer: Option C