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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-4

Each section contains 100 MCQs on Accounting .
11
Which one of the following accounting equations is correct?
Discuss
Answer & Solution
Answer: Option B
Solution:
Assets = Liabilities + Owner's eq accounting equations is correct. It shows that a company's total amount of assets equals the total amount of liabilities plus owner's (or stockholders') equity.
12
Purchase book is maintained to record
Discuss
Answer & Solution
Answer: Option A
Solution:
A purchase book is a special purpose subsidiary book prepared by a business to record all credit purchases.
13
A document sent to customer when he returns the goods is called
Discuss
Answer & Solution
Answer: Option C
Solution:
A document sent to customer when he returns the goods is called Credit note. A credit note or credit memo is a commercial document issued by a seller to a buyer.
14
Those transactions for which there is no separate book, are recorded in the
Discuss
Answer & Solution
Answer: Option D
Solution:
Those transactions for which there is no separate book, are recorded in the Journal Proper. Only those transactions, which cannot be conveniently recorded in any of the other books of original entry i.e., subsidiary books or which are not sufficiently numerous to necessitate a special book being devised for them, are recorded in this book.
15
The person from whom the goods are purchased on credit are called
Discuss
Answer & Solution
Answer: Option B
Solution:
The person from whom the goods are purchased on credit are called Creditors. The person, firm or an organization from whom goods or services are purchased on credit by the business are called creditors of the business.
16
Which of the following sets of expense are the direct expense of business?
Discuss
Answer & Solution
Answer: Option D
Solution:
Wages, Carriage Inward, Octroi and Purchases, Wages, Coal Expenses sets of expense are the direct expense of business.
17
Suspense account given in the trial balance will be entered in the
Discuss
Answer & Solution
Answer: Option B
Solution:
Suspense account given in the trial balance will be entered in the Balance sheet. If the Trial Balance does not agree, the difference is put to Suspense A/c. Suspense A/c on credit side of Trial Balance will be entered on the liabilities side of Balance Sheet. Suspense A/c on debit side of Trial Balance will be entered on the assets side of Balance Sheet.
18
The accounting equation is based on
Discuss
Answer & Solution
Answer: Option A
Solution:
The accounting equation is based on Dual aspect. The accounting equation is made visible in the balance sheet, where the total amount of assets listed must equal the total of all liabilities and equity.
19
Different accounting policies can be adopted in the following area(s)
Discuss
Answer & Solution
Answer: Option D
Solution:
Different accounting policies can be adopted in the Valuation of inventories, Valuation of Investments and Calculation of depreciation.
20
Normally the following accounts are balanced
Discuss
Answer & Solution
Answer: Option B
Solution:
Normally the Personal account and Real account are balanced. Only accounts relating to assets and liabilities ,that is real account and personal accounts are balanced periodically.