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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-4

Each section contains 100 MCQs on Accounting .
41
Memorandum Joint Venture account is a
Discuss
Answer & Solution
Answer: Option C
Solution:
Memorandum Joint Venture account is a Nominal account.
42
_____ is not required in Promissory Note
Discuss
Answer & Solution
Answer: Option A
Solution:
Acceptance is not required in Promissory Note. It does not require any acceptance because payer is only the maker of the promissory note. It requires acceptance by the drawee or someone else on his behalf as the drawer is not the payer.
43
Loss leads to reduction in
Discuss
Answer & Solution
Answer: Option A
Solution:
Loss leads to reduction in Capital. The reduction of capital is done by companies for numerous reasons, including increasing shareholder value and producing a more efficient capital structure.
44
Transaction between business and owner are recorded following ____ concept
Discuss
Answer & Solution
Answer: Option B
Solution:
Transaction between business and owner are recorded following Business entity concept. The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses.
45
One of the Fundamental accounting assumption is
Discuss
Answer & Solution
Answer: Option B
Solution:
One of the Fundamental accounting assumption is Going concern. Going concern is an accounting term for a company that has the resources needed to continue operating indefinitely until it provides evidence to the contrary.
46
Contra-entries are passed only when
Discuss
Answer & Solution
Answer: Option A
Solution:
Contra-entries are passed only when Double column cash book is prepared. The reason for making two entries is to comply with the principle of double entry.
47
Petty cash balance is
Discuss
Answer & Solution
Answer: Option D
Solution:
Petty cash balance is Asset. The petty cash amount may appear as the first or second item listed in the current asset section of the balance sheet.
48
Dividends are usually paid as a percentage of
Discuss
Answer & Solution
Answer: Option D
Solution:
Dividends are usually paid as a percentage of Paid up capital.
49
A proforma invoice is sent by
Discuss
Answer & Solution
Answer: Option D
Solution:
A proforma invoice is sent by Consignor to consignee. A Pro-forma invoice is a document prepared by the consignor which is sent to the consignee along with the goods. It contains the details with respect to the quantity of goods sent, rates at which the goods are sent and other terms and conditions for sending the goods on consignment.
50
Commission to promote credit sale by consignee is known as
Discuss
Answer & Solution
Answer: Option A
Solution:
Commission to promote credit sale by consignee is known as Del credere commission. It is a special commission given by the consignor to the consignee.