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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-5 section-12

Each section contains 100 MCQs on Accounting .
41
A budget which provides an estimated profit and loss account and a summary of all functional budgets is known as
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Answer & Solution
Answer: Option C
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42
Amalgamate adjustment account is opened in the books of transferee company to incorporate
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Answer & Solution
Answer: Option C
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43
The capital of firm is Rs. 80,000. The normal rate of return is 7.5%. If the profit earned by the firm during the last five years is Rs. 8,000, Rs. 9000, Rs. 7000, Rs. 8,500 and Rs. 10,000 then the super profit of the firm will be.
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Answer & Solution
Answer: Option B
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44
When existing companies take over the business of another company or companies, it is known as
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Answer: Option D
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45
The principle that "an accountant should not anticipate profits, but must provide for all losses" is known as:
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Answer: Option C
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46
Match the following.
List-I List-II
a. Materiality concept 1. The same accounting method used by a firm from one period to another
b. Going concern concept 2. An inappropriate assumption of a firm being bankrupT
c. Historical cost concept 3. A normal basis used for accounting assets
d. Consistency concept 4. Relates to the importance of an item or event
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Answer & Solution
Answer: Option A
Solution:
Materiality Concept states that only those items or events that are significant enough to influence the decision of users should be recorded and disclosed in financial statements. Hence, it relates to the importance of an item or event. Therefore, a-4.

Going Concern Concept assumes that a business will continue its operations for the foreseeable future and will not be forced to liquidate. If bankruptcy is assumed, it contradicts this concept. Thus it refers to an inappropriate assumption of a firm being bankrupt. Therefore, b-2.

Historical Cost Concept states that assets should be recorded in the books at the original cost at which they were acquired, not at their current market value. Hence, it represents a normal basis used for accounting assets. Therefore, c-3.

Consistency Concept means that the same accounting methods and principles should be used from one accounting period to another so that financial statements remain comparable over time. Therefore, d-1.

Thus, the correct matching is a-4, b-2, c-3, d-1, which corresponds to Option A.
47
When closing stock is included in the trial balance. It is to be recorded only in?
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Answer & Solution
Answer: Option E
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48
Average profit of a firm is Rs. 9,000. Firm's capital is Rs. 60,000 and normal return on business is expected at 10%. The goodwill by capitalisation method will be:
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Answer: Option A
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49
Right shares refers to those shares which are
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Answer: Option D
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50
The minimum share application money is
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Answer: Option D
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