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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-7 section-1

Each section contains 100 MCQs on Accounting .
61
The process of recording transactions in different journals is called
Discuss
Answer & Solution
Answer: Option D
Solution:
The process of recording transactions in different journals is called Journalising. Journalizing is the process of recording a business transaction in the accounting records. This activity only applies to the double-entry bookkeeping system.
62
Every business transaction affects at least ____ accounts
Discuss
Answer & Solution
Answer: Option B
Solution:
Every business transaction affects at least two accounts, our accounting system is known as a double-entry system.
63
Discount allowed is a kind of deduction from
Discuss
Answer & Solution
Answer: Option B
Solution:
Discount allowed is a kind of deduction from Account Receivable.
64
The other name of Journal is
Discuss
Answer & Solution
Answer: Option C
Solution:
The other name of Journal is Day Book. A journal is also named the book of original entry, from when transactions were written in a journal prior to manually posting them to the accounts in the general ledger or subsidiary ledger.
65
The Journal entry in which two or more account is debited or credited is referred to as
Discuss
Answer & Solution
Answer: Option D
Solution:
The Journal entry in which two or more account is debited or credited is referred to as Compound entry. A compound journal entry is an accounting entry in which there is more than one debit, more than one credit, or more than one of both debits and credits.
66
Goods returned by customer should be debited to which of the following accounts?
Discuss
Answer & Solution
Answer: Option C
Solution:
Goods returned by customer should be debited to Return inward account.
67
Discount allowed is
Discuss
Answer & Solution
Answer: Option A
Solution:
Discount allowed is Expense of business. When the buyer receives a discount, this is recorded as a reduction in the expense (or asset) associated with the purchase, or in a separate account that tracks discounts.
68
Which of the following will be debited if a business purchases goods on credit?
Discuss
Answer & Solution
Answer: Option D
Solution:
Purchases will be debited if a business purchases goods on credit.
69
Which of the following accounts will be debited if the business's owner withdraws cash from business for personal use?
Discuss
Answer & Solution
Answer: Option A
Solution:
Drawings accounts will be debited if the business's owner withdraws cash from business for personal use. Goods withdrawn for personal use by the owner of a business reduce inventory and are recorded on a drawings account.
70
Journals are also referred to as
Discuss
Answer & Solution
Answer: Option B
Solution:
Journals are also referred to as Book of original entries. The information in these books is then summarized and posted into a general ledger, from which financial statements are produced.