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Accounting MCQ Questions and Solutions with Explanations | Commerce

Accounting MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Accounting MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-10 section-1

Each section contains 100 MCQs on Accounting .
91
The normal balance of capital account is
Discuss
Answer & Solution
Answer: Option A
Solution:
The normal balance of capital account is Credit balance. Normal balance is the side where the balance of the account is normally found. Asset accounts normally have debit balances, while liabilities and capital normally have credit balances. Income has a normal credit balance since it increases capital .
92
The normal balance of asset account is
Discuss
Answer & Solution
Answer: Option B
Solution:
The normal balance of asset account is Debit balance. Normal balance is the side where the balance of the account is normally found.
93
The normal balance of liability account is
Discuss
Answer & Solution
Answer: Option A
Solution:
The normal balance of liability account is Credit balance. Normal balance is the side where the balance of the account is normally found. Asset accounts normally have debit balances, while liabilities and capital normally have credit balances. Income has a normal credit balance since it increases capital .
94
Which of the following statements is incorrect regarding capital account?
Discuss
Answer & Solution
Answer: Option A
Solution:
Debit increases the capital account balance statements is incorrect regarding capital account. It decreases the capital account balance.
95
Which of the following is the normal balance of a rent expense account?
Discuss
Answer & Solution
Answer: Option D
Solution:
Debit balance is the normal balance of a rent expense account. Asset accounts normally have debit balances.
96
Revenue and expense accounts are referred to as
Discuss
Answer & Solution
Answer: Option A
Solution:
Revenue and expense accounts are referred to as Nominal accounts because each period they are closed out to Income Summary in the closing process.
97
Office equipment's account is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Office equipment's account is classified as Real account.
98
Which of the following are closed at the end of an accounting period?
Discuss
Answer & Solution
Answer: Option A
Solution:
Nominal accounts in accounting are the temporary accounts, Revenue or Expense are transferred to profit and loss account and closed at the end of each accounting year.
99
Which of the following is the closing balance of a ledger account?
Discuss
Answer & Solution
Answer: Option A
Solution:
Balance c/d is the closing balance of a ledger account.
100
Trial Balance is prepared to check accuracy of
Discuss
Answer & Solution
Answer: Option A
Solution:
A Trial Balance is a statement that shows the total of debit and credit balances of accounts. The total of debit amounts shall be equal to the credit amounts for the trial balance to tally. Hence, it verifies the arithmetical accuracy of the postings in the ledger accounts.