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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-4

Each section contains 100 MCQs on Accounting .
31
When the goods are returned to a supplier
Discuss
Answer & Solution
Answer: Option A
Solution:
When the goods are returned to a supplier a Debit note is sent to him which indicates that his/her account has been debited with the repective amount.
32
Bills receivable endorsed are debited to
Discuss
Answer & Solution
Answer: Option C
Solution:
Bills receivable endorsed are debited to Endorsee A/c. The endorsee will be the owner of the bill and he will realise the payment of the bill on the due date from the drawee.
33
Del-credere Commission is allowed to cover
Discuss
Answer & Solution
Answer: Option D
Solution:
Del Credere Commission. It is a special commission given by the consignor to the consignee. When of commission is given, the consignee undertakes upon himself the risk of any .bad debts arising out of the credit So this Del Credere commission in the form of insurance premium against the risk of bed debts.
34
Interest on Capital is _____ for the business
Discuss
Answer & Solution
Answer: Option B
Solution:
Interest on Capital is expense for the business and is debited to the profit and loss appropriation account.
35
Accounts payable has ____ balance
Discuss
Answer & Solution
Answer: Option A
Solution:
Accounts payable has Credit balance. Since Accounts Payable is a liability account, it should have a credit balance.
36
The concept that "an accountant shouldn't anticipate profit, but must provide for all losses"
Discuss
Answer & Solution
Answer: Option A
Solution:
Conservation concept states that "an accountant shouldn't anticipate profit, but must provide for all losses". The concept that an accountant shouldn't anticipate profit, but must provide for all losses is known as The conservatism concept.
37
Patents accounts are
Discuss
Answer & Solution
Answer: Option C
Solution:
Patents accounts are Real account. Patent right is classified as intangible asset and appear on balance sheet, that is why it is of nature of real account. The balances of real accounts are not cancelled out at the end of an accounting period but are carried over to the next period.
38
Reserve capital means
Discuss
Answer & Solution
Answer: Option A
Solution:
Reserve capital means Part of subscribed uncalled capital. Reserve Capital is defined as a part of subscribed uncalled capital, which will not be called up until and unless the company goes into liquidation.
39
Revenue from sale of product ordinarily is reported as part of earning in the period
Discuss
Answer & Solution
Answer: Option B
Solution:
Revenue from sale of product ordinarily is reported as part of earning in the period when the sale is made.
40
When will the bill mature if the date of maturity of a bill is a holiday
Discuss
Answer & Solution
Answer: Option C
Solution:
Preceding working day the bill will mature if the date of maturity of a bill is a holiday, where the date of maturity is a public holiday, the instrument will become due on the preceding business day.