Accounting MCQ Questions and Solutions with Explanations

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-29

Which of the following is an error of commission?

A) A sale of Rs. 560 ommitted to be recorded B) A purchase of Rs. 840 was wrongly posted C) Treating charges as addition to asset D) Sales book over cost by Rs. 600 and purchase book was under cost by the same amount

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Answer & Solution

Answer: Option B

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The loss on the sale of old furniture is debited to

A) Profit and loss Account B) Furniture Account C) Trading Account D) Depreciation Account

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Answer & Solution

Answer: Option A

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Match List-I (Items of expenditure and receipt) with List-II (Nature of expenditure and receipt) and select the correct answer using the options given below the lists:

List-I	List-II
a. Compensation paid to retrenched workers of the factory for the loss of service	1. Capital expenditure
b. Legal expenses incurred in connection with the purchase of a plot of land	2. Capital receipt
c. Compensation received from the government for the compulsory removal of a business premises to another place	3. Revenue expenditure
d. Sale proceeds of merchandise (goods)	4. Revenue receipt

A) a-1, b-3, c-4, d-2 B) a-1, b-3, c-2, d-4 C) a-3, b-1, c-4, d-2 D) a-3, b-1, c-2, d-4

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Answer & Solution

Answer: Option D

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Rebate on bills discounted is shown in the Balance Sheet as . . . . . . . .

A) advances B) other liabilities & provisions C) other income D) reserves & surplus

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Answer & Solution

Answer: Option B

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The nominal value of preference shares to be redeemed can be provided out of . . . . . . . .

A) general reserve B) capital reserve C) CRR D) securities premium

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Answer & Solution

Answer: Option A

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Which one of the following should be considered as a revenue expenditure?

A) Rs. 1,000 paid for the erection of a new plant B) Cost of Rs. 10,000 incurred in increasing the sitting accommodation of a hotel C) Damages paid on account of breach of a contract to supply certain goods D) Repairs to machinery purchased second hand

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Answer & Solution

Answer: Option C

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A person who draws a bill of exchange is known as the:

A) Drawee B) Drawer C) Payer D) Payee

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Answer & Solution

Answer: Option B

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Which of the following is not a case of combination?

A) external reconstruction B) internal reconstruction C) amalgamation D) absorption

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Answer & Solution

Answer: Option B

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The proprietor of a business is treated as a creditor for capital introduced by him according to:

A) money measurement concept B) cost concept C) business entity concept D) dual aspect concept

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Answer & Solution

Answer: Option C

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100

Rs. 10,000 spent on the replacement of worn-out parts of an electronic machinery is treated as:

A) Capital expenditure B) Revenue expenditure C) Deferred revenue expenditure D) Capital loss

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Answer & Solution

Answer: Option B

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