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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-3

Each section contains 100 MCQs on Accounting .
31
Commercial accounting is based on
Discuss
Answer & Solution
Answer: Option B
Solution:
Commercial accounting is based on Double entry book keeping. Commercial accounting is something about providing right informatin to right people on right time. In commercial accounting, the system is maintained by the business organizations. The main objective of commercial accounting is to know the profit or loss and the financial position of any business.
32
An asset that is NOT physical in nature is called
Discuss
Answer & Solution
Answer: Option A
Solution:
An asset that is NOT physical in nature is called Intangible asset. An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets.
33
In which of the following interim dividend is treated?
Discuss
Answer & Solution
Answer: Option B
Solution:
In profit and loss appropriation account interim dividend is treated. An interim dividend is a dividend payment made before a company's annual general meeting (AGM) and the release of final financial statements.
34
Which of the following documents contains rules and regulations for internal management of the business?
Discuss
Answer & Solution
Answer: Option B
Solution:
Articles of association contains rules and regulations for internal management of the business. Articles of Association is a document which prescribes the rules and bye-laws for the general management of the company and for the attainment of its object as given in the memorandum.
35
Which of the following is NOT a cash inflow?
Discuss
Answer & Solution
Answer: Option D
Solution:
Purchase of fixed asset is NOT a cash inflow. Cash inflow is the money received by an organization as a result of its operating activities, investment activities, and financing activities.
36
Which of the following is quoted company?
Discuss
Answer & Solution
Answer: Option C
Solution:
Listed company is quoted company. The CA 2006 definition of 'quoted company' in s. 385 refers to companies listed on 'regulated markets' including the Main Market, but not AIM.
37
Which of the following capital is required for the registration of the company?
Discuss
Answer & Solution
Answer: Option C
Solution:
Authorized capital is required for the registration of the company. The authorized capital of a company (sometimes referred to as the authorized share capital, registered capital or nominal capital, particularly in the United States) is the maximum amount of share capital that the company is authorized by its constitutional documents to issue (allocate) to shareholders.
38
Accounts receivable & inventory are the examples of
Discuss
Answer & Solution
Answer: Option A
Solution:
Accounts receivable & inventory are the examples of Current assets. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets. Current assets are important to businesses because they can be used to fund day-to-day business operations and to pay for the ongoing operating expenses.
39
Which of the following account will be credited in the books of XYZ Co. Ltd, if the business purchases a vehicle thriugh cheque?
Discuss
Answer & Solution
Answer: Option C
Solution:
Bank account will be credited in the books of XYZ Co. Ltd, if the business purchases a vehicle thriugh cheque.
40
In which of the following condition, a company will have positive working capital?
Discuss
Answer & Solution
Answer: Option A
Solution:
If current assets>current liabilities, a company will have positive working capital. When a company has more current assets than current liabilities, it has positive working capital.