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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-2

Each section contains 100 MCQs on Accounting .
51
Exercising a degree of caution in the case of judgements needed under the condition of uncertainity is the assumption of which of the following accounting concepts?
Discuss
Answer & Solution
Answer: Option D
Solution:
Exercising a degree of caution in the case of judgements needed under the condition of uncertainity is the assumption of Prudence concept. Prudence Concept or Conservatism principle is a key accounting principle which makes sure that assets and income are not overstated and provision is made for all known expenses and losses whether the amount is known for certain or just an estimation.
52
Which one of the following concepts states that the publication or presentation of financial statements should not be delayed?
Discuss
Answer & Solution
Answer: Option C
Solution:
Timeliness concept states that the publication or presentation of financial statements should not be delayed. Timeliness principle in accounting refers to the need for accounting information to be presented to the users in time to fulfill their decision making needs.
53
Land on lease should be shown in Blance sheet contrary to the fact that the company does not own that piece of land is the implementation of which accounting concept?
Discuss
Answer & Solution
Answer: Option D
Solution:
Land on lease should be shown in Blance sheet contrary to the fact that the company does not own that piece of land is the implementation of Substance over form concept.
54
Depreciation is charged on fixed assets to comply with which of the following accounting principle?
Discuss
Answer & Solution
Answer: Option A
Solution:
Depreciation is charged on fixed assets to comply with Matching concept which requires that revenues must be matched with associated expenses to get a complete and accurate picture of profit and loss.
55
Net profit is computed in which of the following?
Discuss
Answer & Solution
Answer: Option B
Solution:
Net profit is computed in Income statement. Net income, also called net profit, is a calculation that measures the amount of total revenues that exceed total expenses. It other words, it shows how much revenues are left over after all expenses have been paid.
56
In income statement, gross profit is always equal to
Discuss
Answer & Solution
Answer: Option C
Solution:
In income statement, gross profit is always equal to Sales - cost of goods sold.
57
Office equipment is a ______ asset for a computer manufacturer and the same office equipment is a ____ asset for a company that deals in these equipments
Discuss
Answer & Solution
Answer: Option D
Solution:
Office equipment is a Fixed asset for a computer manufacturer and the same office equipment is a current asset for a company that deals in these equipments.
58
Financial statements mainly help in
Discuss
Answer & Solution
Answer: Option D
Solution:
Financial statements mainly help in Communication of economic events.
59
Purchases + opening stock - closing stock = ?
Discuss
Answer & Solution
Answer: Option C
Solution:
Purchases + opening stock - closing stock = Cost of goods sold.
60
Which of the following financial statements shows the financial position of a business at a specific date?
Discuss
Answer & Solution
Answer: Option A
Solution:
Balance sheet financial statements shows the financial position of a business at a specific date. The balance sheet, sometimes called the statement of financial position, lists the company's assets, liabilities,and stockholders ' equity (including dollar amounts) as of a specific moment in time. That specific moment is the close of business on the date of the balance sheet.