📘 Accrued Income – 100 MCQs

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1. Accrued income refers to:
   A. Income received in advance
   B. Income earned but not received
   C. Income not earned
   D. Capital receipt
   Answer: B
2. Accrued income arises due to application of:
   A. Cash basis
   B. Accrual concept
   C. Prudence
   D. Dual aspect
   Answer: B
3. Accrued income is treated as:
   A. Liability
   B. Asset
   C. Expense
   D. Capital
   Answer: B
4. Accrued income leads to:
   A. Understatement of profit if ignored
   B. Overstatement of profit if ignored
   C. No effect
   D. Liability increase
   Answer: A
5. Accrued income is also called:
   A. Outstanding income
   B. Deferred income
   C. Prepaid income
   D. Capital income
   Answer: A
6. Accrued income relates to:
   A. Past period
   B. Current period
   C. Future period
   D. None
   Answer: B
7. Accrued income is shown in:
   A. P&L only
   B. Balance Sheet only
   C. Both
   D. None
   Answer: C
8. Accrued income is added to:
   A. Income
   B. Expense
   C. Liability
   D. Capital
   Answer: A
9. Accrued income increases:
   A. Profit
   B. Expense
   C. Liability
   D. Capital
   Answer: A
10. Accrued income increases:
    A. Asset
    B. Liability
    C. Expense
    D. Capital
    Answer: A
11. Accrued income is recorded at:
    A. Beginning
    B. End
    C. Anytime
    D. Never
    Answer: B
12. Accrued income ensures:
    A. Matching
    B. Prudence
    C. Realisation
    D. None
    Answer: A
13. Accrued income is:
    A. Income received
    B. Income earned but not received
    C. Income not earned
    D. None
    Answer: B
14. Ignoring accrued income results in:
    A. Understated profit
    B. Overstated profit
    C. Correct profit
    D. No effect
    Answer: A
15. Accrued income is:
    A. Adjustment
    B. Routine
    C. Cash entry
    D. Capital entry
    Answer: A
16. Accrued income is a:
    A. Current asset
    B. Fixed asset
    C. Liability
    D. Capital
    Answer: A
17. Accrued income is:
    A. Debit balance
    B. Credit balance
    C. Nil
    D. None
    Answer: A
18. Accrued income is shown in Balance Sheet under:
    A. Current assets
    B. Fixed assets
    C. Liabilities
    D. Capital
    Answer: A
19. Accrued income relates to:
    A. Income earned
    B. Income not earned
    C. Expense
    D. Liability
    Answer: A
20. Accrued income is recorded to:
    A. Show correct income
    B. Increase profit
    C. Reduce liability
    D. None
    Answer: A
21. Accrued income is:
    A. Revenue
    B. Capital
    C. Liability
    D. None
    Answer: A
22. Accrued income arises when:
    A. Income earned but cash not received
    B. Cash received in advance
    C. No income
    D. None
    Answer: A
23. Accrued income is:
    A. Income of next year
    B. Income of current year
    C. Past year
    D. None
    Answer: B
24. Accrued income is:
    A. Receivable
    B. Payable
    C. Expense
    D. Capital
    Answer: A
25. Accrued income affects:
    A. Profit
    B. Asset
    C. Both
    D. None
    Answer: C

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26. Entry for accrued income:
    A. Debit Accrued Income A/c
    B. Credit Income A/c
    C. Both
    D. None
    Answer: C
27. Accrued income A/c is debited because:
    A. Asset increases
    B. Income increases
    C. Expense decreases
    D. Liability decreases
    Answer: A
28. Income A/c is credited because:
    A. Income increases
    B. Asset increases
    C. Expense increases
    D. Liability increases
    Answer: A
29. Accrued income appears in P&L as:
    A. Addition
    B. Deduction
    C. Expense
    D. Liability
    Answer: A
30. Accrued income appears in Balance Sheet as:
    A. Asset
    B. Liability
    C. Capital
    D. Expense
    Answer: A
31. If interest ₹10,000 earned, ₹2,000 accrued → total income =
    A. 10,000
    B. 12,000
    C. 8,000
    D. 2,000
    Answer: B
32. Accrued income is carried forward as:
    A. Asset
    B. Liability
    C. Income
    D. Expense
    Answer: A
33. Accrued income is reversed next year:
    A. Yes
    B. No
    C. Optional
    D. None
    Answer: A
34. Accrued income increases:
    A. Income
    B. Expense
    C. Liability
    D. Capital
    Answer: A
35. Accrued income is:
    A. Adjustment entry
    B. Cash entry
    C. Capital entry
    D. None
    Answer: A
36. Accrued income ensures:
    A. True profit
    B. False profit
    C. No effect
    D. None
    Answer: A
37. Accrued income relates to:
    A. Revenue earned
    B. Revenue not earned
    C. Expense
    D. None
    Answer: A
38. Accrued income increases:
    A. Asset
    B. Liability
    C. Expense
    D. Capital
    Answer: A
39. Accrued income reduces:
    A. Understatement
    B. Overstatement
    C. Error
    D. None
    Answer: A
40. Accrued income is recorded:
    A. Before closing
    B. After closing
    C. Anytime
    D. Never
    Answer: A

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61. In Railways, accrued income may include:
    A. Interest
    B. Rent
    C. Lease income
    D. All
    Answer: D
62. Accrued income is important for:
    A. Revenue recognition
    B. Expense
    C. Liability
    D. None
    Answer: A
63. Accrued income is:
    A. Outstanding
    B. Prepaid
    C. Deferred
    D. None
    Answer: A
64. Accrued income is:
    A. Current asset
    B. Fixed asset
    C. Liability
    D. Capital
    Answer: A
65. Accrued income represents:
    A. Future benefit
    B. Past benefit
    C. Income
    D. None
    Answer: A
66. Accrued income is recorded for:
    A. Accuracy
    B. Profit increase
    C. Tax only
    D. None
    Answer: A
67. Accrued income is included in:
    A. Final accounts
    B. Cash book
    C. Ledger only
    D. None
    Answer: A
68. Accrued income reduces:
    A. Understatement
    B. Overstatement
    C. Error
    D. None
    Answer: A
69. Accrued income is:
    A. Short-term asset
    B. Long-term asset
    C. Liability
    D. Income
    Answer: A
70. Accrued income is shown at:
    A. Year end
    B. Month end
    C. Daily
    D. None
    Answer: A
71. Accrued income is:
    A. Nominal + Real
    B. Real
    C. Personal
    D. None
    Answer: A
72. Accrued income arises when:
    A. Income earned before receipt
    B. After receipt
    C. No income
    D. None
    Answer: A
73. Accrued income ensures:
    A. Correct income
    B. Incorrect income
    C. Profit manipulation
    D. None
    Answer: A
74. Accrued income is adjusted through:
    A. Journal
    B. Ledger
    C. Trial balance
    D. None
    Answer: A
75. Accrued income is:
    A. Receivable
    B. Payable
    C. Expense
    D. None
    Answer: A
76. Accrued income affects:
    A. Profit
    B. Asset
    C. Both
    D. None
    Answer: C
77. Accrued income is essential for:
    A. True financial position
    B. False
    C. Profit only
    D. None
    Answer: A
78. Accrued income is:
    A. Income of current year
    B. Next year
    C. Past year
    D. None
    Answer: A
79. Accrued income must be:
    A. Disclosed
    B. Ignored
    C. Hidden
    D. None
    Answer: A
80. Accrued income increases:
    A. Income
    B. Expense
    C. Liability
    D. Capital
    Answer: A
81. Accrued income increases:
    A. Asset
    B. Liability
    C. Expense
    D. Capital
    Answer: A
82. Accrued income is:
    A. Adjustment
    B. Error
    C. Income
    D. None
    Answer: A
83. Accrued income is:
    A. Current asset
    B. Liability
    C. Capital
    D. Expense
    Answer: A
84. Accrued income ensures:
    A. Matching
    B. Profit
    C. Cash flow
    D. None
    Answer: A
85. Accrued income is recorded to:
    A. Avoid understatement
    B. Avoid overstatement
    C. Both
    D. None
    Answer: A
86. Accrued income relates to:
    A. Present
    B. Future
    C. Past
    D. None
    Answer: A
87. Accrued income is:
    A. Earned but not received
    B. Received
    C. Paid
    D. None
    Answer: A
88. Accrued income increases:
    A. Income
    B. Expense
    C. Liability
    D. Capital
    Answer: A
89. Accrued income increases:
    A. Asset
    B. Expense
    C. Liability
    D. Income
    Answer: A
90. Accrued income is:
    A. Outstanding income
    B. Prepaid
    C. Deferred
    D. None
    Answer: A
91. Accrued income is necessary for:
    A. True accounts
    B. False
    C. Profit only
    D. None
    Answer: A
92. Accrued income is recorded as:
    A. Asset
    B. Liability
    C. Expense
    D. Capital
    Answer: A
93. Accrued income is:
    A. Current asset
    B. Liability
    C. Capital
    D. Expense
    Answer: A
94. Accrued income ensures:
    A. Accuracy
    B. Error
    C. Profit increase
    D. None
    Answer: A
95. Accrued income is:
    A. Receivable
    B. Payable
    C. Expense
    D. None
    Answer: A
96. Accrued income is:
    A. Adjustment
    B. Routine
    C. Cash
    D. None
    Answer: A
97. Accrued income reduces:
    A. Understatement
    B. Overstatement
    C. Error
    D. None
    Answer: A
98. Accrued income increases:
    A. Asset
    B. Income
    C. Liability
    D. Expense
    Answer: A
99. Accrued income is:
    A. Asset
    B. Liability
    C. Income
    D. Capital
    Answer: A
100. Accrued income is required for:
     A. True profit
     B. False profit
     C. No effect
     D. None
     Answer: A

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