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-6 section-24

Which of the following is not true?

A) When all the forfeited shares are not reissued, the forfeited shares account will also show credit balance equal to gain on forfeiture of shares not yet reissued B) Losson the reissue of shares cannot be more than the gain on forfeiture of those shares C) At the time of forfeiture of shares, the securities premium is debited along with share capital when the premium has not been received D) When forfeited shares are issued at a premium, the premium amount is credited to the capital reserve account

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Which method of depreciation is suggested for coal mines:

A) Diminishing Balance Method B) Fixed Instalment Method C) Sum of Years Digits Method D) Depletion Method

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

In case of sub-lease royalty earned by the lessor is credited to

A) Sub-Lease Account B) Profit and Loss Account C) Short Working Account D) Royalty Receivable Account

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Rs. 500 posted to wages account instead of machinery account. Identify the type of error?

A) Clerical error B) Error of omission C) Error of principle D) Recording error

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

"Discount" on issue of debenture is a:

A) Real asset B) Fictitious asset C) Fixed asset D) Current asset

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Which of the following is not a cash flow?

A) Sale of fixed assets B) Purchase of machinery on credit C) Issue of debentures D) Cash from business operations

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

P, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31^st March 2019, it was discovered that the interest on capitals was provided @ 7% per annum instead of 9% per annum. In the adjusting entry

A) P will be credited with Rs. 2,000 and Q will be debited with Rs. 2,000 B) P will be debited with Rs. 2,000 and Q will be credited with Rs. 2,000 C) P will be debited with Rs. 2,000 and R will be credited with Rs. 2,000 D) P will be credited with Rs. 2,000 and R will be debited with Rs. 2,000

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Which of the following transactions results in flow of funds:

A) Bills issued to creditors B) Shares issued for machinery C) Cash realised from debtors D) Debentures issued partly for cash and partly for raw materials

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Subscription received in 1998:
For the year 1997
For the year 1998
For the year 1999
Subscription outstanding on 31^st December, 1998 was Rs. 4,000. What amount of subscription will appear in income and Expenditure account of 1998:

A) Rs. 20,000 B) Rs. 19,000 C) Rs. 22,000 D) Rs. 16,000

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Bonus shares mean shares issued to:

A) Workers in lieu of their share in profit B) Existing equity shareholders C) Existing preference shareholders D) Existing equity shareholders and preference shareholders both

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board