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-25

As per Garner V. Murray Rule, the loss resulting from a partner's insolvency is borne by other partners in

A) equal ratio B) their capital ratio C) their profit sharing ratio D) 3 : 1 ratio

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Answer & Solution

Answer: Option B

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Alteration of shares of smaller amounts into shares of larger amount is called . . . . . . . . of share capital.

A) surrender B) subdivision C) consolidation D) None of these

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Answer & Solution

Answer: Option C

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The movement of securities from one stock exchange to another with the object of reaping a profit from the disparity in share prices is called

A) Averaging B) Arbitraging C) Back wardation D) Forward trading

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Answer & Solution

Answer: Option B

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Trading account is prepared to find out:

A) gross profit or loss B) net profit or loss C) financial position D) position of the partners

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Answer & Solution

Answer: Option A

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A sale of goods to Vaibhav Deep for cash should be debited to:

A) Vaibhav's A/C B) Cash A/C C) Sale of goods A/C D) None of these

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Answer & Solution

Answer: Option B

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That part of the capital which will be called up only in the event of winding up of the company is called . . . . . . . . capital.

A) issued B) paid-up C) reserve D) uncalled

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Answer & Solution

Answer: Option C

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Which of the following errors will cause the trial balance to be out of balance?

A) The total of the Purchase book is Rs. 1000 short B) Goods received back from Mahesh, Rs. 250 have not been entered in the Returns Inward book C) Office furniture purchased from Ravi and Co. Rs. 950 has been entered in the Purchase book D) A purchase of Rs. 251 from Gopal and Co. has been entered in the Purchase book as Rs. 215

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Answer & Solution

Answer: Option A

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A Purchases returns of Rs. 200 to Mr. P if entered in the sales book would affect:

A) P's account B) purchases returns account C) sales account D) purchases returns account and sales account

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Answer & Solution

Answer: Option D

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The balance of cash account indicates . . . . . . . .

A) net income for the period B) net loss for the period C) net worth of the business D) net cash on hand

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Answer & Solution

Answer: Option C

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Wages is an example of:

A) capital expenses B) indirect expenses C) direct expenses D) revenue expenses

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Answer & Solution

Answer: Option C

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