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-5

Rights shares are the shares

A) that have a right of redemption B) offerred to the existing equity shareholders C) legally issued to the public at large D) issued by a newly formed company

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Balance of petty cash book represents

A) An expense B) A profit C) An assets D) A liability

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

A limited company issued equity shares of Rs. 100 each. It has called-up Rs. 75 on each share, but received only Rs. 60 per share. The share capital account will be credited with

A) Rs. 75 per share B) Rs. 60 per share C) Rs. 100 per share D) None of the above

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Which of the following is not correct:

A) Purchases + Opening stock - Cost of goods sold = closing stock B) Opening stock + Purchases - closing stock = Cost of goods sold C) Closing stock + Cost of goods sold - Purchases = Opening stock D) Cost of goods sold - closing stock - Purchases = Opening stock

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Rearrange the following items on Asset side of the Balance Sheet of Company Account according to the Schedule VI of Part I
1. Current Assets
2. Investments
3. Fixed Assets
4. Miscellaneous expenditure

A) 1, 2, 3, 4 B) 1, 3, 4, 2 C) 4, 2, 1, 3 D) 3, 2, 1, 4

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Prepaid rent appearing in trial balance should be shown in

A) Trading account B) Profit and loss account C) Liabilities side of balance sheet D) Asset side of balance sheet

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Match the items in Column-I with the items in Column-2

Column-1	Column-2
a. Materiality concept	1. The same accounting method used by a firm from one period to another
b. Going Concern concept	2. An inappropriate assumption of a firm being bankrupt
c. Historical Cost concept	3. A normal basis used for accounting assets
d. Consistency concept	4. Relates to the importance of an item or event

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

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Rent earned by a trading company is:

A) Operating income B) Non-operating income C) Current assets D) Other assets

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

A company can reissue its forfeited shares:

A) At a premium B) At face value C) At a discount D) All the above

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

100

X company purchased a machine paying cash Rs. 50,000, sold inventory for cash Rs. 10,000 (at cost), and collected bills receivables of Rs. 5,000 during a month. The net effect on fund flow would be:

A) Rs. 35,000 application of funds B) Rs. 35,000 source of funds C) Rs. 50,000 application of funds D) Rs. 65,000 application of funds

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board