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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-3 section-4

Each section contains 100 MCQs on Accounting .
21
Opening and closing inventories are recorded in
Discuss
Answer & Solution
Answer: Option A
Solution:
Opening and closing inventories are recorded in Journal proper.
22
Which of the following instruments is not a negotiable instrument?
Discuss
Answer & Solution
Answer: Option C
Solution:
Crossed cheque is not a negotiable instrument. A cheque is a negotiable instrument. It can either be open or crossed. While a crossed cheque is not payable over the counter but shall be collected only through a banker. The amount payable for the crossed cheque is transferred to the bank account of the payee.
23
The installation expenses for a new machinery will be debited to
Discuss
Answer & Solution
Answer: Option C
Solution:
The installation expenses for a new machinery will be debited to Machinery A/c.
24
When obligation is not probable or the amount expected to be paid to settle the liability cannot be measured with sufficient reliability, it is called
Discuss
Answer & Solution
Answer: Option A
Solution:
When obligation is not probable or the amount expected to be paid to settle the liability cannot be measured with sufficient reliability, it is called Contingent liability. Contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event.
25
A Trial Balance contains the balances of
Discuss
Answer & Solution
Answer: Option D
Solution:
A Trial Balance contains the balances of Real A/c and Nominal A/c and Personal A/c.
26
Error which affect only one account can be
Discuss
Answer & Solution
Answer: Option B
Solution:
Error which affect only one account can be Error of posting. An error in which amount is posted to the wrong side of the same account is known as error of posting. For example, goods sold to X wrongly credited to his account.
27
In case goods are manufactured and segregated for specified consumers, the best method for valuation of inventory would be
Discuss
Answer & Solution
Answer: Option D
Solution:
In case goods are manufactured and segregated for specified consumers, the best method for valuation of inventory would be Specific identification method. Specific identification inventory valuation method is a way of keeping track of all items in an inventory individually.
28
Overriding commission is generally calculated on
Discuss
Answer & Solution
Answer: Option B
Solution:
Overriding commission is generally calculated on Total sales exceeding invoice value/cost. Overriding Commission is the extra commission allowed to the consignee in addition to the normal commission usually for making extra efforts to sell a new product in the market.
29
Economic life of an enterprise Is split into periodic interval as per ____ concept
Discuss
Answer & Solution
Answer: Option B
Solution:
Economic life of an enterprise Is split into periodic interval as per Periodicity concept. It is the concept that each accounting period has an economic activity associated with it, and that the activity can be measured, accounted for, and reported upon.
30
Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation is termed as
Discuss
Answer & Solution
Answer: Option C
Solution:
Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation is termed as Provision. A provision is an account which records a present liability of an entity.