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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-7

Each section contains 100 MCQs on Accounting .
31
Which one of the following concept is used as fund in the preparation of Funds Flow Statement?
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
32
The effect of surrender of shares is the same as of shares:
Discuss
Answer & Solution
Answer: Option D
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33
Calculate the interest on drawings assuming the rate @ 10% p.a for the year ended 31st December 2016, for the withdrawals of Rs. 2000 made at the beginning of each month
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Answer & Solution
Answer: Option C
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34
The principle 'anticipate no profit and provide for all possible losses' emanates from:
Discuss
Answer & Solution
Answer: Option D
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35
Which of the following errors will not affect the trial balance?
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Answer & Solution
Answer: Option A
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36
If a share of Rs. 100 issued at a discount of Rs. 5 of which full amount has been called up is forfeited for nonpayment of final call of Rs. 20, the share capital account will be debited by
Discuss
Answer & Solution
Answer: Option B
Solution:
When a share is forfeited, we need to reverse the entries made when the share was originally issued.
Share Capital Account is originally credited when shares are issued.
Therefore, on forfeiture, we need to debit the Share Capital Account.
The amount to be debited is the called-up capital on the forfeited shares.
In this case, the face value of the share is Rs. 100, and the full amount has been called up.
Even though the share was issued at a discount, the called-up amount is still based on the face value.
The non-payment of the final call of Rs. 20 doesn't change the fact that the full Rs. 100 has been called up.
Therefore, the Share Capital Account will be debited by Rs. 100.
So, the correct answer is Option B: Rs. 100
37
That portion of the share capital which can be called up only on the winding-up of the company is the
Discuss
Answer & Solution
Answer: Option A
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38
Consider the following items:
i. Debentures
ii. Prepaid rent
iii. Interest accrued
iv. Bank overdraft
Which of them are current liabilities:
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
39
During the Year 2004, the income from subscription was Rs. 4,500, subscription received in advance Rs. 360. On 31st December 2004, the outstanding subscription was Rs. 140. The amount of subscription to be shown in Receipts and Payments a/c for the year 2004 would be
Discuss
Answer & Solution
Answer: Option D
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40
When a company takes over another one and clearly becomes a new owner, the action is called
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Answer & Solution
Answer: Option B
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