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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-15

Each section contains 100 MCQs on Accounting .
41
When there is change in the value of rupee, it is said to be change in
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Answer & Solution
Answer: Option B
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42
For purpose of redemption of preference share company can issue
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Answer & Solution
Answer: Option B
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43
The General Manager is entitled to a comission of 10% on net profit after charging the commission of Works Manager. The Works Manager is entitled to a commission of 5% on the net profits after charging the commission of General Manager. The profit before charging any commission is Rs. 7,500. The commission of the Works manager, to the nearest rupee, will be:
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Answer & Solution
Answer: Option D
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44
Which of the following is not capital reserve it:
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Answer: Option C
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45
A . . . . . . . . is used to reflect the changes in purchasing power of money or a whole.
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Answer: Option A
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46
Which one of the following error do not affect the agreement of trial balance?
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Answer: Option C
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47
. . . . . . . . is considered as the father of modern accounting system-
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Answer: Option C
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48
Which of the following are the benefits of responsibility accounting?
1. It facilitates the centralisation of decision taking.
2. It provides a system of closer control.
3. It measures the performance of individuals in an objective manner.
4. It develops a sense of cost consciousness among managers and their subordinates.
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Answer & Solution
Answer: Option B
Solution:
Responsibility accounting is a system where different managers are made responsible for the performance of their own departments, especially in terms of costs and revenues.

Statement 1 is incorrect because responsibility accounting encourages decentralisation of decision-making, where managers at different levels are given authority to take decisions for their own areas, rather than centralising all decisions at the top.

Statement 2 is correct as it provides a system of closer control, since each manager is accountable for their department’s performance, making monitoring more effective.

Statement 3 is correct because it enables objective measurement of individual performance by comparing actual results with predetermined targets or budgets.

Statement 4 is also correct as it develops a sense of cost consciousness among managers and their subordinates, encouraging efficient use of resources.

Therefore, the correct statements are 2, 3 and 4.

Hence, Option B is correct.
49
Opening stock Rs. 80,000, closing stock Rs. 1,00,000, cost of goods sold Rs. 3,60,000. Hence stock turnover is
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Answer & Solution
Answer: Option B
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50
A limited company follows the written down value method of depreciating machinery year after year due to
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Answer & Solution
Answer: Option C
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