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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-4

Each section contains 100 MCQs on Accounting .
51
Errors are _____ mistakes
Discuss
Answer & Solution
Answer: Option C
Solution:
Errors are Unintentional mistakes. Some unintentional act, omission, or error arising from ignorance, surprise, imposition, or misplaced confidence. A state of mind not in accord with reality.
52
Which error cannot be revealed on the preparation of trial balance?
Discuss
Answer & Solution
Answer: Option B
Solution:
Compensatory errors cannot be revealed on the preparation of trial balance. Compensating Errors are error on the debit side and is compensated by an error of equal amount on the credit side.
53
Parties to a bill of exchange are
Discuss
Answer & Solution
Answer: Option D
Solution:
Parties to a bill of exchange are Drawer, Drawee and Payee.
54
Accommodation bill is drawn
Discuss
Answer & Solution
Answer: Option C
Solution:
Accommodation bill is drawn to cater the fund requirements of both the parties. A bill, draft, or note made, drawn, accepted, or endorsed by one person for another without consideration to enable that other to raise money or obtain credit thereby.
55
Rs.5000 spent on maintenance of computer is
Discuss
Answer & Solution
Answer: Option C
Solution:
Rs.5000 spent on maintenance of computer is Revenue expenditure. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place.
56
The assumption underlying the fixed installment method of depreciation is that of ____ of the asset over its useful life
Discuss
Answer & Solution
Answer: Option A
Solution:
The assumption underlying the fixed installment method of depreciation is that of Equal usage of the asset over its useful life.
57
_____ will generally show a debit balance
Discuss
Answer & Solution
Answer: Option C
Solution:
Drawings will generally show a debit balance. A drawing account is an accounting record maintained to track money withdrawn from a business by its owners. A drawing account is used primarily for businesses that are taxed as sole proprietorships or partnerships.
58
Profit & Loss account is prepared for a period of one year by following
Discuss
Answer & Solution
Answer: Option A
Solution:
Profit & Loss account is prepared for a period of one year by following Periodicity concept. It is the concept that each accounting period has an economic activity associated with it, and that the activity can be measured, accounted for, and reported upon.
59
Which of the following enhances the earning capacity of an asset?
Discuss
Answer & Solution
Answer: Option D
Solution:
Increase in working capacity of an asset and Replacing damage parts of an asset enhances the earning capacity of an asset.
60
Gross profit is equal to
Discuss
Answer & Solution
Answer: Option D
Solution:
Gross profit is equal to Sales - Cost of goods sold.