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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-4 section-1

Each section contains 100 MCQs on Accounting .
31
Identify the correct sequence of accounting process
Discuss
Answer & Solution
Answer: Option D
Solution:
Identifying -> Recording -> Communicating is the correct sequence of accounting process.
32
Bookkeeping mainly consists of which part of accounting process?
Discuss
Answer & Solution
Answer: Option C
Solution:
Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business. Bookkeeping refers mainly to the record-keeping aspects of financial accounting, and involves preparing source documents for all transactions, operations, and other events of a business.
33
Auditing refers to
Discuss
Answer & Solution
Answer: Option B
Solution:
Auditing refers to Examination of financial information. A financial audit is an objective examination and evaluation of the financial statements of an organization to make sure that the financial records are a fair and accurate representation of the transactions they claim to represent.
34
Which of the following is the external user of financial statements?
Discuss
Answer & Solution
Answer: Option C
Solution:
Creditor of the business is the external user of financial statements. External users are people outside the business entity (organization) who use accounting information.
35
Which of the following is the internal user of financial statements?
Discuss
Answer & Solution
Answer: Option D
Solution:
Manager of the business is the internal user of financial statements. Internal users are people within a business organization who use financial information.
36
________ is the first phase of accounting cycle
Discuss
Answer & Solution
Answer: Option A
Solution:
Identifying an economic event or transaction is the first phase of accounting cycle, which includes any transaction involving the use or exchange of a company's assets.
37
______ is a separate legal entity whose total capital can be divided into many shares
Discuss
Answer & Solution
Answer: Option C
Solution:
Company is a separate legal entity whose total capital can be divided into many shares.
38
An asset possesses which of the following?
Discuss
Answer & Solution
Answer: Option A
Solution:
An asset possesses future economic benefits for the business. An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide a future benefit.
39
Liabilities are which of the following?
Discuss
Answer & Solution
Answer: Option B
Solution:
Liabilities are Obligations. Liabilities are defined as a company's legal financial debts or obligations that arise during the course of business operations.
40
_______ is the gross inflow of economic benefits
Discuss
Answer & Solution
Answer: Option C
Solution:
Income is the gross inflow of economic benefits during the period arising from the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants.