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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-11

Each section contains 100 MCQs on Accounting .
11
Which one of the following is capital expenditure?
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Answer & Solution
Answer: Option B
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12
Following are the events which generally happen in the life of a public limited company
1. Public issue of shares (IPO)
2. Firm Incorporation
3. Preliminary expenditures
4. Issue of equity shares to promoters of the company
Choose the correct sequence (chronological order) of the envets from the options given below:
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Answer & Solution
Answer: Option D
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13
The cost of a machine is Rs. 70,000. Its life span is 10 years, after which its expected residual price will be Rs. 5,000. Based on straight line method, the depreciation for first four year will be
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Answer & Solution
Answer: Option B
Solution:
Understanding Depreciation:
Depreciation is the decrease in the value of an asset over time due to wear and tear, obsolescence, or other factors.

Straight-Line Method:
This is a simple way to calculate depreciation. It assumes the asset loses value evenly over its useful life.

Calculating Depreciation:
First, find the total depreciation amount: Cost of the machine - Residual value
In this case, that's Rs. 70,000 - Rs. 5,000 = Rs. 65,000

Next, divide the total depreciation by the asset's lifespan (in years): Total Depreciation / Useful Life
So, Rs. 65,000 / 10 years = Rs. 6,500 per year

Depreciation for Four Years:
Finally, to find the depreciation for the first four years, multiply the annual depreciation by four:
Rs. 6,500/year * 4 years = Rs. 26,000

Therefore, the correct answer is Option B: Rs. 26,000
14
'Funds' in the fund flow statements means-
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Answer & Solution
Answer: Option D
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15
Interest on capital is added with
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Answer & Solution
Answer: Option A
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16
X and Y agree to form a partnership. X contributes Rs. 5,000 in assets and devotes one half time to partnership while Y contribution Rs. 20,000 in cash and devotes full time to the firm. How will the partners share the profits of the firm:
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Answer & Solution
Answer: Option D
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17
Assertion (A): Accounting information refers to only events concerned with a business firm.
Reason (R): Accounting information is presented in financial statements.
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Answer & Solution
Answer: Option B
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18
Goodwill account is
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Answer & Solution
Answer: Option B
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19
In liquidation proceedings of a company certain lists are attached with the statement of affairs of the company. Match list-I with list-II and select your answer:
List-I List-II
a. List E 1. Preference shareholders
b. List F 2. Equity shareholders
c. List G 3. Deficiency account
d. List H 4. Unsecured creditors
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Answer & Solution
Answer: Option A
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20
Subscription received in advance by a club will be shown on:
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Answer & Solution
Answer: Option B
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