Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Section 20 Section 21 Section 22 Section 23 Section 24 Section 25 Section 26 Section 27 Section 28 Section 29 Section 30

71.
Consider the following statements:
I. Workmen's compensation and third party insurance are examples of guarantee insurance
II. Re-insurance is more common under fire and marine insurance
Which of the statements given above is/are correct?

A. I only

B. II only

C. Both I and II

D. Neither I nor II

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72.
Cash purchase in the account of:

A. purchases account

B. joint venture account

C. venturers account

D. cash account

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73.
Match List-I with List-II and select the correct answer using the options given below the lists:

List-I List-II

a. Amortisation 1. Diminition in the life of the assets due to excessive use

b. Depreciation 2. Exhaustion of natural resource

c. Depletion 3. Expiration of tangible assets

d. Obsolescence 4. Expiration of intangible assets

5. Economic deterioration due to improved inventions

A. a-1, b-2, c-3, d-4

B. a-1, b-2, c-4, d-5

C. a-5, b-2, c-3, d-4

D. a-4, b-3, c-2, d-5

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74.
Any written document in support of a business transaction is called a . . . . . . . .

A. Voucher

B. Bill

C. Carbon copy

D. Expense bill

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75.
The minimum amount of capital which must be subscribed by the public before allotment is called:

A. allotment money

B. minimum subscription

C. subscribed capital

D. None of these

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76.
Depreciation is appearing in the trial balance of a company. While making final accounts, it should be shown in:

A. the profit and loss account

B. the balance sheet as a deduction from the asset concerned

C. the profit and loss account and balance sheet

D. the profit and loss account or balance sheet

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77.
Penalty for delay in refunding application money:

A. 6%

B. 5%

C. 15%

D. 20%

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78.
Purchase for office furniture is recorded in:

A. General Journal

B. Cash book

C. Purchase book

D. Sales book

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79.
The cash price of a machine is Rs. 1,20,000 and its hire purchase price is Rs. 1,50,000 to be paid in five equal yearly instalments. If a company purchases the machine on hire purchase basis, the amount of capital expenditure will be:

A. Rs. 1,20,000

B. Rs. 1,35,000

C. Rs. 1,50,000

D. Rs. 1,60,000

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80.
Agreement of the trial balance may not indicate that:

A. no error remains undetected

B. double entry has been completed

C. arithmetic accuracy is reasonably proved

D. all ledger accounts have been correctly posted

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Amortisation	1. Diminition in the life of the assets due to excessive use
b. Depreciation	2. Exhaustion of natural resource
c. Depletion	3. Expiration of tangible assets
d. Obsolescence	4. Expiration of intangible assets
	5. Economic deterioration due to improved inventions

Accounting MCQ Questions and Solutions with Explanations | Commerce

71. Consider the following statements: I. Workmen's compensation and third party insurance are examples of guarantee insurance II. Re-insurance is more common under fire and marine insurance Which of the statements given above is/are correct?

Answer & Solution

72. Cash purchase in the account of:

Answer & Solution

Answer & Solution

74. Any written document in support of a business transaction is called a . . . . . . . .

Answer & Solution

75. The minimum amount of capital which must be subscribed by the public before allotment is called:

Answer & Solution

76. Depreciation is appearing in the trial balance of a company. While making final accounts, it should be shown in:

Answer & Solution

77. Penalty for delay in refunding application money:

Answer & Solution

78. Purchase for office furniture is recorded in:

Answer & Solution

79. The cash price of a machine is Rs. 1,20,000 and its hire purchase price is Rs. 1,50,000 to be paid in five equal yearly instalments. If a company purchases the machine on hire purchase basis, the amount of capital expenditure will be:

Answer & Solution

80. Agreement of the trial balance may not indicate that:

Answer & Solution

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71.
Consider the following statements:
I. Workmen's compensation and third party insurance are examples of guarantee insurance
II. Re-insurance is more common under fire and marine insurance
Which of the statements given above is/are correct?

72.
Cash purchase in the account of:

74.
Any written document in support of a business transaction is called a . . . . . . . .

75.
The minimum amount of capital which must be subscribed by the public before allotment is called:

76.
Depreciation is appearing in the trial balance of a company. While making final accounts, it should be shown in:

77.
Penalty for delay in refunding application money:

78.
Purchase for office furniture is recorded in:

79.
The cash price of a machine is Rs. 1,20,000 and its hire purchase price is Rs. 1,50,000 to be paid in five equal yearly instalments. If a company purchases the machine on hire purchase basis, the amount of capital expenditure will be:

80.
Agreement of the trial balance may not indicate that: