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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-3

Each section contains 100 MCQs on Accounting .
51
Stock of a Trading concern consists of
Discuss
Answer & Solution
Answer: Option C
Solution:
Stock of a Trading concern consists of Merchandise inventory. Merchandise inventory is the cost of goods on hand and available for sale at any given time. Merchandise inventory (also called Inventory) is a current asset with a normal debit balance meaning a debit will increase and a credit will decrease.
52
Expenditure incurred annually on renewal of patent is a
Discuss
Answer & Solution
Answer: Option A
Solution:
Expenditure incurred annually on renewal of patent is a Revenue expenditure. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place.
53
Which of the following account will be credited when the goods are purchased on cash?
Discuss
Answer & Solution
Answer: Option B
Solution:
Cash account will be credited when the goods are purchased on cash.
54
Which of the following account will be credited when the goods are purchased on credit from Mr. Ali?
Discuss
Answer & Solution
Answer: Option B
Solution:
Mr. Ali account will be credited when the goods are purchased on credit from Mr. Ali.
55
An informal accounting statement that lists the ledger account balances at a point of time and compares the total of debit balances with the total of credit balances is known as
Discuss
Answer & Solution
Answer: Option C
Solution:
An informal accounting statement that lists the ledger account balances at a point of time and compares the total of debit balances with the total of credit balances is known as Trial balance. A trial balance is a bookkeeping worksheet in which the balance of all ledgers are compiled into debit and credit account column totals that are equal.
56
Documentary evidence, in a specific format used to record the details of a transaction is known as
Discuss
Answer & Solution
Answer: Option B
Solution:
Documentary evidence, in a specific format used to record the details of a transaction is known as Voucher. Voucher is documentary evidence in a specific format that records the details of a transaction. It is accompanied by the evidence of transaction.
57
Cost incurred for the maintenance of shop is considered as
Discuss
Answer & Solution
Answer: Option C
Solution:
Cost incurred for the maintenance of shop is considered as Revenue expenditure. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place.
58
Double entry accounting system includes
Discuss
Answer & Solution
Answer: Option C
Solution:
Double entry accounting system includes both cash and accrual accounting. Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts.
59
Which of the following financial statements show the financial health of an organisation at a stated point of time?
Discuss
Answer & Solution
Answer: Option A
Solution:
Balance sheet financial statements show the financial health of an organisation at a stated point of time. A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.
60
The estimated value at which an asset is expected to be sold after the end of its useful life is called
Discuss
Answer & Solution
Answer: Option D
Solution:
The estimated value at which an asset is expected to be sold after the end of its useful life is called Residual value, Salvage value and Scrap value.