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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-3

Each section contains 100 MCQs on Accounting .
41
Debenture is also named as
Discuss
Answer & Solution
Answer: Option B
Solution:
Debenture is also named as Bond. In a sense, all debentures are bonds , but not all bonds are debentures. Whenever a bond is unsecured, it can be referred to as a debenture.
42
Which of the following is the most important document of the company?
Discuss
Answer & Solution
Answer: Option A
Solution:
Memorandum of association is the most important document of the company. It is the charter of the company, which defines the objects of the company's formation and the utmost possible scope of its operations beyond which its actions cannot go.
43
Authorized share capital is also known as
Discuss
Answer & Solution
Answer: Option A
Solution:
Authorized share capital is also known as Registered capital. The authorized capital of a company is the maximum amount of share capital that the company is authorized by its constitutional documents to issue to shareholders.
44
The maximum amount with which a company is registered is called
Discuss
Answer & Solution
Answer: Option A
Solution:
The maximum amount with which a company is registered is called Authorized capital.
45
Which one of the following is NOT true about revenue expenditure?
Discuss
Answer & Solution
Answer: Option B
Solution:
Revenue expenditure does not improve the financial position of the business. Revenue expenditures are typically referred to as ongoing operating expenses.
46
Which one of the following statement is CORRECT about long term liabilities?
Discuss
Answer & Solution
Answer: Option B
Solution:
Long term liabilities consist of all debts, payabke after 12 months. Long-term liabilities are obligations not due within the next 12 months or within the company's operating cycle if it is longer than one year.
47
Which one of the following can offer its share to public at large?
Discuss
Answer & Solution
Answer: Option B
Solution:
Listed company can offer its share to public at large. Listed company is a corporation whose ownership is dispersed among the general public in many shares of stock which are freely traded on a stock exchange or in over-the-counter markets.
48
The persons who sign Articles and Memorandum of the company and contribute in the initial share capital of the company are called
Discuss
Answer & Solution
Answer: Option A
Solution:
The persons who sign Articles and Memorandum of the company and contribute in the initial share capital of the company are called Subscribers. They are called subscribers because, as part of the company formation.
49
Which of the following are the owners of a company?
Discuss
Answer & Solution
Answer: Option C
Solution:
Shareholders are the owners of a company. A shareholder, also referred to as a stockholder, is any person, company, or institution that owns at least one share of a company's stock.
50
General office expenses are charged to which of the following head?
Discuss
Answer & Solution
Answer: Option A
Solution:
General office expenses are charged to Administrative expenses head because we know that all types of official expenses are known as administrative expense.