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-4 section-29

Interest on performing assets should be recognized on . . . . . . . . basis.

A) actually received B) standard C) accrual D) None of these

Discuss

Answer & Solution

Answer: Option C

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The following figures (all in Rs.) relate to non-trading concern:
1^st January, 1995 stock of medicines 5,000
1^st January, 1995 outstanding creditors for medicines 3,000
Amount paid for medicines during the years 15,000
Value of medicines spoiled during the year stock of medicines 400
On 31^st December, 1995 3,500
The amount to be debited to income and expenditure account would be

A) Rs. 15,000 B) Rs. 18,500 C) Rs. 18,000 D) Rs. 13,500

Discuss

Answer & Solution

Answer: Option D

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Schedule 9 relates to . . . . . . . .

A) fixed assets B) borrowings C) advances D) capital

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Answer & Solution

Answer: Option C

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At the time of endorsement of a bill, the drawer credits . . . . . . . .

A) the drawee B) endorsee personal account C) bills receivable account D) bills for collection account

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Answer & Solution

Answer: Option C

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While preparing bank reconciliation statement, cheques paid into bank but not yet cleared are . . . . . . . .

A) added to the balance as per cash book to arrive at the balance as per pass book B) deducted to the balance as per cash book to arrive at the balance as per pass book C) divided to the balance as per cash book to arrive at the balance as per pass book D) multiplied to the balance as per cash book to arrive at the balance as per pass book

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Answer & Solution

Answer: Option B

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Realization loss is transferred to . . . . . . . .

A) preference shareholders a/c B) equity shareholders a/c C) creditors a/c D) None of these

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Answer & Solution

Answer: Option B

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A cartel is a combination firms

A) Which are functioning in a particular industry B) Whose combined assets are worth more than 90% of total assets of the industry C) Who control major chunk of the market D) Whose combined profits are enormous

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Answer & Solution

Answer: Option A

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Which preparing accounts from incomplete records, the amount of credit sales is determined by?

A) preparing total creditors account B) preparing total debtors account C) ascertaining the balance in trading account other than closing stock D) ascertaining the balance in debtors account and cash book

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Answer & Solution

Answer: Option B

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When the proposed dividend exceeds 20% of paid up capital, percentage of profit transferred to general reserve is . . . . . . . .

A) 2.5% B) 5% C) 7.5% D) 10%

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Answer & Solution

Answer: Option D

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Advance payment of tax is a . . . . . . . .

A) prepaid expense B) general reserve C) interim dividend D) provision for taxation

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Answer & Solution

Answer: Option A

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