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-2 section-17

In case of a firm's dissoultion, the capital accounts are finally closed by

A) Realisation Account B) Profit and Loss Account C) Cash or Bank Account D) Profit and Loss Appropriation Account

Discuss

Answer & Solution

Answer: Option C

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Assertion (A) Human resource accounting is the measurement of the cost and value of people to the organisation.
Reason (R) Human resource accounting involves measuring costs incurred by the, organisations to recruit, select, hire, train and develop employees and judge their economic value to the organisation.

A) (A) and (R) are true and (R) is the correct explanation of (A) B) (A) and (R) are true and (R) is not the correct explanation of (A) C) (A) is true, but (R) is false D) Both (A) and (R) are false

Discuss

Answer & Solution

Answer: Option A

Solution:

Assertion (A) is correct because Human Resource Accounting (HRA) refers to the process of measuring the cost and value of human resources (employees) in an organisation.

Reason (R) is also correct as it explains that HRA involves measuring costs related to recruitment, selection, hiring, training, and development of employees and also evaluating their economic value to the organisation.

The reason clearly provides a detailed explanation of how human resource accounting measures both cost and value of employees.

Thus, (R) correctly explains (A).

Hence, both Assertion and Reason are true, and the Reason is the correct explanation of the Assertion.

Premium on redemption of debentures account, until redeemed, is shown in-

A) Current liabilities B) Current provisions C) Provisions for liabilities D) Long-term provisions

Discuss

Answer & Solution

Answer: Option D

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Double Account system is applicable to:

A) Consumer industries B) Chemical industries C) Public enterprises D) Public utility concern

Discuss

Answer & Solution

Answer: Option D

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What is the meaning of book keeping?

A) Recording in preliminary books B) Preparation of profit and loss account C) Calculation of net profit D) Writing partnership deed

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Answer & Solution

Answer: Option A

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"Book keeping is an art of recording of business and other transactions in monetary terms." This definition has been given by

A) Spicer and Pegler B) J. R. Batliboy C) Carter D) John Macneil

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Answer & Solution

Answer: Option A

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Prepaid insurance account is:

A) an expense B) a revenue C) an asset D) a liability

Discuss

Answer & Solution

Answer: Option C

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In an organization, provision for Bad debts is Rs. 5,000 in the beginning. At the end total sales is Rs. 6,00,000 out of which Rs. 1,00,000 is cash sales. 1% provision is to be created on remaining debtors. The amount to be debited to profit and loss account in respect of provision is.

A) Rs. 6,000 B) Rs. 5,000 C) Rs. 1,000 D) Zero

Discuss

Answer & Solution

Answer: Option D

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Opening Stock = Rs. 10,000
Purchases = Rs. 90,000
Closing stock = Rs. 28,000
Gross Profit = 10% of sales
The amount of sales will be

A) Rs. 60,000 B) Rs. 72,000 C) Rs.80,000 D) Rs. 90,000

Discuss

Answer & Solution

Answer: Option C

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Find gross profit/gross loss if,

Cost of goods sold	Rs. 7,900
Sales	Rs. 11,000
Purchase	Rs. 3,000

A) Rs. 8,000 B) Rs. 4,900 C) Rs. 3,100 D) Rs. 100 (Profit)

Discuss

Answer & Solution

Answer: Option C

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