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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-6 section-1

Each section contains 100 MCQs on Accounting .
51
Which of the following accounts can be classified as a real account?
Discuss
Answer & Solution
Answer: Option D
Solution:
Cash account can be classified as a real account. A real account is an account that retains and rolls forward its ending balance from period to period. The areas in the balance sheet in which real accounts are found are assets, liabilities, and equity.
52
Capital increases if ______ increases
Discuss
Answer & Solution
Answer: Option D
Solution:
Capital increases if revenue increases. The extent to which an increase in revenue will affect company's working capital depends on how efficiently business operates.
53
Capital of a business decreases if there is an increase in
Discuss
Answer & Solution
Answer: Option A
Solution:
Capital of a business decreases if there is an increase in Drawings. Drawing is always deducted from capital.
54
Net income equal to Revenues minus
Discuss
Answer & Solution
Answer: Option C
Solution:
Net income equal to Revenues minus Expenses. Revenue is the income generated before any expenses are taken out. Therefore, when a company is said to have "top-line growth," the company's revenue is growing. Revenue is also called net sales which is revenue minus any returns of purchased merchandise.
55
Payment of expenses will ______ the assets
Discuss
Answer & Solution
Answer: Option B
Solution:
Payment of expenses will reduce the assets. When an expense is recorded at the same time it is paid for with cash, the cash (asset) account declines, while the amount of the expense reduces the retained earnings account.
56
Which of the following accounting equation is correct?
Discuss
Answer & Solution
Answer: Option C
Solution:
Assets - Liabilities = Capital is correct.
The Accounting Equation states that the Assets are always equal to the sum of Capital & Liabilities.
57
Fresh capital introduction will increase
Discuss
Answer & Solution
Answer: Option B
Solution:
Fresh capital introduction will increase Assets and Equity.
Capital will increase the Equity.
Cash at Bank will increase the Asset.
58
Current Assets - Current Liabilities = ?
Discuss
Answer & Solution
Answer: Option D
Solution:
Current Assets - Current Liabilities = Working capital.
Working capital is calculated as current assets minus current liabilities.
59
The process of recording in Journal is done
Discuss
Answer & Solution
Answer: Option C
Solution:
The process of recording in Journal is done frequently during the accounting period. An organization begins its accounting cycle with the recording of transactions using journal entries.
60
General Journal is a book of _____ entries
Discuss
Answer & Solution
Answer: Option B
Solution:
General Journal, sometimes also known as the Book of Original Entry, because it is the first place a transaction is entered into the books. Journal Entries are made from source documents, which can be anything from receipts to invoices to bank statements.