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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-2 section-1

Each section contains 100 MCQs on Accounting .
11
The following is (are) the type(s) of Journal
Discuss
Answer & Solution
Answer: Option D
Solution:
The following are the types of Journal: Purchase Journal, Sales Journal and Cash Journal.
12
The process of entering all transactions from the Journal to Ledger is called
Discuss
Answer & Solution
Answer: Option A
Solution:
The process of entering all transactions from the Journal to Ledger is called Posting. Posting refers to the process of transferring entries in the journal into the accounts in the ledger. Posting to the ledger is the classifying phase of accounting.
13
The following is a statement showing the financial status of the comapany at any given time
Discuss
Answer & Solution
Answer: Option C
Solution:
Balance Sheet is a statement showing the financial status of the comapany at any given time. The balance sheet, together with the income statement and cash flow statement, make up the cornerstone of any company's financial statements.
14
The following is a statement of revenues and expenses for a specific period of time
Discuss
Answer & Solution
Answer: Option C
Solution:
Profit & Loss statements is a statement of revenues and expenses for a specific period of time, usually a fiscal quarter or year.
15
Balance sheet is a statement of
Discuss
Answer & Solution
Answer: Option D
Solution:
Balance sheet is a statement of Assets, Liabilities and Capital.
16
Balance sheets are prepared
Discuss
Answer & Solution
Answer: Option D
Solution:
Balance sheets are prepared annually. It lists the current and fixed assets on the left side of the sheet and liabilities and owner's equity (capital) on the right.
17
The ratios that refer to the ability of the firm to meet the short term obligations out of its short term resources
Discuss
Answer & Solution
Answer: Option A
Solution:
The ratios that refer to the ability of the firm to meet the short term obligations out of its short term resources is known as Liquidity ratio.
18
The measure of how efficiently the assets resources are employed by the firm is called
Discuss
Answer & Solution
Answer: Option C
Solution:
The measure of how efficiently the assets resources are employed by the firm is called Activity ratio. Activity ratios are a category of financial ratios that measure a firm's ability to convert different accounts within its balance sheets into cash or sales.
19
The following is (are) the current liability (ies)
Discuss
Answer & Solution
Answer: Option D
Solution:
Bills payable, Outstanding expenses and Bank Overdraft are the current liabilities.
20
Current ratio =
Discuss
Answer & Solution
Answer: Option B
Solution:
Current ratio = Current assets/Current liabilities. Current ratio is a comparison of current assets to current liabilities, calculated by dividing your current assets by your current liabilities.