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-6

The statutory meeting of a company is convened

A) once in a year B) once in the life time of the company C) once in 6 months D) once in 3 months

Discuss

Answer & Solution

Answer: Option B

Solution:

The statutory meeting of a company is convened once in the life time of the company.

A statutory meeting is a one-time meeting of shareholders and directors that occurs shortly after the company's incorporation.

The purpose of this meeting is to discuss important matters such as the company's formation, appointment of directors, and initial financial matters.

Therefore, the correct option is once in the life time of the company.

Wages paid for erection of new plant (machinery) should be debited to:

A) Wages account B) Cash account C) Plant account D) None of the above

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

If the purchase consideration is calculated by adding the various payments to be made, the method is called

A) Lumpsum method B) Networth method C) Net payment method D) Value of share method

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

The estimated life of a machine costing Rs. 9,00,000 is 9 years. The firm follows the 'Sum of Year Digit' Method of depreciation. The amount of depreciation provision on the machine in the sixth year of its life will be:

A) Rs. 40,000 B) Rs. 60,000 C) Rs. 80,000 D) Rs. 90,000

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Consider the following statements-
Statement (A): Ratio analysis is an important tool to gain knowledge about the financial soundness of a company.
Reason (R): Ratio analysis is the only for an indicator to decide whether to invest or not in a company.
Give the correct answer:

A) Both A and R are correct and R is the correct explanation of A B) Both A and R are correct and R is not the correct explanation of A C) A is correct but R is wrong D) A is wrong but R is true

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Which of the following is the use of funds:

A) Purchase of machinery B) Redemption of debentures C) Payment of dividend D) All of the above

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Which of the following is a personal account:

A) Investment B) Commission C) Outstanding salary D) Share premium

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Which of the following loan commitments are within the scope of IFRS-9?

A) Loan commitments that can be settled net in cash or by delivering or issuing another financial instrument B) Commitment to provide a loan at a below market interest rate C) Loan commitment that the entity designates as financial liabilities at fair value through profit or loss D) All of the above

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Which of the following receipts is of revenue nature?

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

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Profit prior to incorporation can be used:

A) In writing off goodwill B) In making good the capital losses C) In both A and B D) None of the above

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board