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-25

Any amount received towards endowment fund is a . . . . . . . . receipt.

A) Ordinary B) Special C) Revenue D) Capital

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Answer & Solution

Answer: Option A

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Which of the following errors is revealed by trial balance?

A) Wrong amount entered in the book of original entry B) Wrong amount entered in a ledger account C) Complete omission of an entry from the book of original entry D) All of these

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Answer: Option B

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Consistency with reference to application of accounting principles refers to the fact that:

A) Companies in the same industry use identical accounting procedures and methods, and are consistent B) Income and assets have not been over stated C) Accounting methods and procedures used have been consistently applied from year to year D) All methods and procedures have been utilised

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Answer & Solution

Answer: Option C

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If some goods from business are given away as charity to a particular person or institution, it should be . . . . . . . .

A) debited to charity account B) credited to charity account C) debit sales account D) debit to donation account

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Answer & Solution

Answer: Option A

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Generally, under single entry system:

A) only personal accounts are maintained B) only personal, cash and bank accounts are maintained C) all accounts are maintained D) no account is maintained

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Answer & Solution

Answer: Option B

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While making an adjustment entry in respect of interest on capital, credit is made to:

A) Capital account B) Interest on capital account C) Profit & loss account D) Interest account

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Answer & Solution

Answer: Option A

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. . . . . . . . supplies the management significant information in order to assist the management to discharge its various functions such as planning, control and decision making.

A) Financial accounting B) Cost accounting C) Management account D) Human resource accounting

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Answer & Solution

Answer: Option C

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The distinction between capital and revenue is necessary for the preparation of . . . . . . . .

A) fund flow statement B) receipts and payment account C) final accounts D) cash flow statement

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Answer & Solution

Answer: Option B

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Cost of goods sold - Rs. 13,300, Gross Profit - Rs. 3,200, Netprofit - Rs. 700, what is the amount of sales?

A) Rs. 14,000 B) Rs. 10,100 C) Rs. 16,500 D) Rs. 17,200

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Answer & Solution

Answer: Option C

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

List-I (Items)	List-II (Standards)
a. Accounting for fixed assets	1. AS-9
b. Revenue recognition	2. AS-10
c. Depreciation accounting	3. AS-3
d. Cash flow statement	4. AS-6

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

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Answer & Solution

Answer: Option C

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