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-3 section-15

On 1^st January 2012 X drawn of Rs. 20,000 on Y for three months. X discounted the bill with bank for Rs. 19,900. On due date, the bill was dishonoured. For dishonour in the books of X. Bank account will be credited by

A) Rs. 19,900 B) Rs. 20,000 C) Rs. 20,100 D) Rs. 19,800

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Answer & Solution

Answer: Option B

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Which one of the following receipts is of revenue nature?

A) Amount realised from the sale of investments B) Dividend received on investment C) Amount borrowed from a bank D) Compensation received from municipal corporation for the acquisition of land for the construction of road

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Answer: Option B

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Authorised share capital is

A) Capital amount paid-up by share holders B) Maximum amount of capital for which shares can be issued by the company C) Total Share capital of the company D) Total amount called-up on share capital

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Answer: Option B

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In what order are the followingassetsshown in the balance sheet of a company?
i. Trade receivables
ii. Cash
iii. Furniture and fittings
iv. Investment in shares and debentures

A) ii, i, iv, iii B) i, ii, iii, iv C) iii, iv, i, ii D) iv, iii, ii, i

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Answer & Solution

Answer: Option C

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The main objective of accounting standards is to

A) Prepare the accounting reports easily understood by the common man B) Comply with the legal formalities C) Harmonize diversified accounting practices D) Comply with the requirements of the International Accounting Standards (IAS)

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Answer: Option C

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Amount spent on an advertisement campaign, the benefit of which is likely to last for three years is a:

A) Capital expenditure B) Revenue expenditure C) Deferred revenue expenditure D) Contingent expenditure

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Answer: Option C

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Deferred revenue expenditure is associated with

A) An expenditure for entertainment of executives B) Past expenditure made by a company now adjusted from the current profit C) Expenditure which is revenue in nature is spread over a number of years D) An expenditure which cannot be taken into account due to non-availability of a cash E) It is a recurring expenditure of a business organization

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Answer: Option C

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The main objective of Accountancy is to know about the:

A) Profit or Loss and Assets and Liabilities of the business B) Position of the Stock of Goods C) Position of Cash D) Errors and frauds of the employees

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Answer: Option A

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What is the correct sequence of the following actions required for the preparation of financial accounts?
1. Trading account
2. Making adjusting entries
3. Balance sheet
4. Profit and Loss account
Select the correct answer:

A) 4, 2, 1 and 3 B) 2, 4, 3 and 1 C) 2, 1, 4 and 3 D) 4, 2, 3 and 1

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Answer: Option A

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The Accounting Standard No. 2 of the International Accounting Standards Committee is on the subject of

A) Valuation and presentation of inventories B) Depreciation Accounting C) Information to be disclosed in financial statements D) None of the above

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Answer: Option A

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