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-7 section-27

State which of the following errors will not be revealed by the trial balance?

A) errors of complete omission B) errors of carrying forward C) wrong totalling of the purchases book D) error of partial omission

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Answer & Solution

Answer: Option A

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. . . . . . . . is a reserve created to meet any loss due to natural calamities.

A) Revenue reserve B) Capital reserve C) Catastrophe reserve D) None of these

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Answer & Solution

Answer: Option C

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Which of the following fictitious assets is not taken over by the transferee company?

A) Preliminary expenses B) Underwriting commission C) Discount on issue of shares D) All of these

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Answer & Solution

Answer: Option D

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Bonus payable on maturity of the policy is termed as:

A) cash bonus B) capital bonus C) reversionary bonus D) None of these

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Answer & Solution

Answer: Option C

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Profit under single entry system of Book Keeping means:

A) the difference between opening and closing cash balances and reduced by fresh capital introduced B) the difference between opening net assets and closing net assets as increased by drawings and reduced by new capital introduced C) profit shown by Trading and Profit and Loss Account and Balance sheet D) the amount of closing cash balance as reduced by expenses

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Answer & Solution

Answer: Option B

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In the case of a sole proprietorship, Assets in Balance sheet items are conveniently shown in:

A) Order of fixity B) Order of liquidity C) Alphabetical order D) Order of dates of acquisition

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Answer & Solution

Answer: Option B

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When debentures are redeemed out of profits, an equal amount is transferred to . . . . . . . .

A) CRR B) capital reserve C) revenue reserve D) debenture redemption reserve

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Answer & Solution

Answer: Option D

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Dividend may be declared out of . . . . . . . .

A) current profit B) past reserves C) money provided by government D) All of these

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Answer & Solution

Answer: Option D

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Debit means:

A) Decrease in asset B) Increase in liability C) An entry on the left hand side of an account D) Moderate increase in liability

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Answer & Solution

Answer: Option C

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Fictitious assets are shown on the asset side of the balance sheet of a company under the heading . . . . . . . .

A) fixed asset B) current asset C) foot note D) None of these

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Answer & Solution

Answer: Option A

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