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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-8 section-14

Each section contains 100 MCQs on Accounting .
71
The transfer by a company of one or more of its business divisions to another newly set-up company is called
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Answer & Solution
Answer: Option A
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72
Margin of safety means
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Answer & Solution
Answer: Option D
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73
Which of the following is not correctly matched? In the term of Activity and Flow of Fund.
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Answer & Solution
Answer: Option B
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74
Which of the following are correct regarding rights of partners?
1. A partner has the right to allow the admission of a new partner.
2. Every partner has a right to take part in the management of business.
3. Every partner has a joint ownership of partnership property.
4. Every partner has a right to share the profit not the losses with other partners.
5. Every partner has a right to inspect the books of account and have a copy of the same.
6. In case of emergency, a partner has a right to act as a man of prudence.
Select the correct answer:
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Answer & Solution
Answer: Option D
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75
The partnership may come to an end due to the
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Answer & Solution
Answer: Option D
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76
Making the provision for bad and doubtful debts in anticipation of actual bad debts is on the basis of:
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Answer & Solution
Answer: Option C
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77
Which of the following are methods of calculating goodwill?
1. Average profit method
2. Super profit method
3. Log method
4. Sum of years digit method
5. Capitalisation of average profit method
6. Capitalisation of super profit method
7. FIFO method
Select the correct answer:
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Answer & Solution
Answer: Option A
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78
The funds available with a company after paying all claims including tax and dividend is called
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Answer & Solution
Answer: Option D
Solution:
Let's break down why:

Net Profit (Option A): This is the profit a company makes *before* paying out dividends to shareholders or setting aside money for future use.

Net Operating Profit (Option B): This focuses on the profit from a company's core business operations. It doesn't account for things like taxes or dividends.

Capital Profit (Option C): This comes from selling assets (like property or equipment) for more than you originally paid. It's not the profit left after *all* expenses are paid.

Retained Earnings (Option D): This is the profit a company has left over *after* paying all its expenses (including taxes) and distributing dividends to shareholders. It's the money the company "retains" for reinvestment or other future needs. This is the definition that perfectly matches the question.
79
Match the items of a company given in List-A with the classification given in List-B and check your answer:
List-A List-B
a. Preliminary Expenses 1. Miscellanneous Expenditure
b. Unclaimed Dividend 2. Loans and Advances
c. Bills receivable 3. Current liability
d. Live Stock 4. Fixed assets
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Answer & Solution
Answer: Option C
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80
The raw material should be valued at:
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Answer & Solution
Answer: Option C
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