Accounting MCQ Questions and Solutions with Explanations

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-28

Assertion (A): The matching concept requires that costs should be recognised as expenses in the period in which revenue is realised
Reason (R): There may not be a matching between expenditure and expense over a short period
In the context given above, which one of the following is correct?

A) Both A and R are true, and R is the correct explanation of A B) Both A and R are true, but R is not a correct explanation of A C) A is true, but R is false D) A is false, but R is true

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Answer & Solution

Answer: Option B

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The profit on re-issue of shares is transferred to . . . . . . . .

A) general reserve B) capital reserve C) P/L account D) P/L appropriation account

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Answer & Solution

Answer: Option B

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Money measurement concept of accounting theory is based on the assumption that the value of money will:

A) remain constant B) fluctuate C) decrease D) go up

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Answer & Solution

Answer: Option A

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Premium received on issue of shares is a . . . . . . . .

A) capital receipt B) revenue receipt C) deferred capital receipt D) deferred revenue receipt

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Answer & Solution

Answer: Option A

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In which of the following methods, the asset account appears at its original cost through out its life?

A) Annuity method B) Depreciation fund method C) Sum of years, digits method D) Machine hour rate method

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Answer & Solution

Answer: Option B

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The balance left in the capital accounts on dissolution of a firm is transferred to

A) Realisation Account B) Profit and loss Account C) Bank Account D) None of these

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Answer & Solution

Answer: Option C

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Errors of principle arise when . . . . . . . .

A) proper distinction is not made between capital and revenue B) there is an omission of transaction C) wrong amounts are entered in the subsidiary books D) transactions are entered in the wrong subsidiary books

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Answer & Solution

Answer: Option A

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Insurance unexposed account is a . . . . . . . .

A) Real account B) Personal account C) Nominal account D) Representative account

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Answer & Solution

Answer: Option B

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Consider the following statements:
I. In case of the marine insurance, the insurable interest must exist at the time the loss occurs
II. In case of fire insurance, insurable interest must exist both at the time of the contract and at the time of loss
Which of the statements given above is/are correct?

A) I only B) II only C) Both I and II D) Neither I nor II

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Answer & Solution

Answer: Option C

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Debit balance in cash book means:

A) overdraft as per pass book B) overdraft as per cash book C) credit balance as per pass book D) debit balance as per day book

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Answer & Solution

Answer: Option C

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