Accounting MCQ Questions and Solutions with Explanations | Commerce

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Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Section 20 Section 21 Section 22 Section 23 Section 24 Section 25 Section 26 Section 27 Section 28 Section 29 Section 30

51.
Petty cash system is designed:

A. to meet the needs of small businesses

B. to cover small and miscellaneous income

C. to cover the small expenditure to be paid in cash

D. to cover both small incomes and expenditures

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52.
Which of the following assets does not depreciate?

A. Machinery and equipment

B. Patents

C. Land

D. Furniture

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53.
The main objective of providing depreciation is to:

A. create secret reserves

B. reduce the book value of assets

C. value the assets properly

D. allocate cost of the assets

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54.
Preparation of trial balance helps in the deduction of . . . . . . . .

A. error of principle

B. compensating errors

C. errors of whole omission

D. clerical errors

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55.
Bills receivable account is:

A. an expense Account

B. an asset Account

C. a liability Account

D. a revenue Account

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56.
Which one of the following is treated as revenue expenditure?

A. Cost incurred for a new exit as required under the local bodies by laws

B. Interest paid on loan during the construction of works

C. Cost of pulling down an old building

D. A dealer in purchasing sewing machines and spent some money on the repairs

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57.
Banks are required to transfer . . . . . . . . of their profits to statutory reserve.

A. 20%

B. 25%

C. 10%

D. None of these

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58.
While preparing the books of the transferee company in purchase method, the difference between purchase consideration and share capital of the transferor company should be adjusted in . . . . . . . .

A. share capital

B. reserves

C. assets

D. liabilities

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59.
A withdrawal of cash from business by the proprietor of the firm should be credited to:

A. Capital Account

B. Cash Account

C. Drawing Account

D. Proprietor's Account

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60.
Which one of the following is an example of personal account?

A. Capital account

B. Building account

C. Cash account

D. Investment account

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Accounting MCQ Questions and Solutions with Explanations | Commerce

51. Petty cash system is designed:

Answer & Solution

52. Which of the following assets does not depreciate?

Answer & Solution

53. The main objective of providing depreciation is to:

Answer & Solution

54. Preparation of trial balance helps in the deduction of . . . . . . . .

Answer & Solution

55. Bills receivable account is:

Answer & Solution

56. Which one of the following is treated as revenue expenditure?

Answer & Solution

57. Banks are required to transfer . . . . . . . . of their profits to statutory reserve.

Answer & Solution

58. While preparing the books of the transferee company in purchase method, the difference between purchase consideration and share capital of the transferor company should be adjusted in . . . . . . . .

Answer & Solution

59. A withdrawal of cash from business by the proprietor of the firm should be credited to:

Answer & Solution

60. Which one of the following is an example of personal account?

Answer & Solution

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51.
Petty cash system is designed:

52.
Which of the following assets does not depreciate?

53.
The main objective of providing depreciation is to:

54.
Preparation of trial balance helps in the deduction of . . . . . . . .

55.
Bills receivable account is:

56.
Which one of the following is treated as revenue expenditure?

57.
Banks are required to transfer . . . . . . . . of their profits to statutory reserve.

58.
While preparing the books of the transferee company in purchase method, the difference between purchase consideration and share capital of the transferor company should be adjusted in . . . . . . . .

59.
A withdrawal of cash from business by the proprietor of the firm should be credited to:

60.
Which one of the following is an example of personal account?