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-8 section-6

Garner Vs. Murray rule is applicable when-

A) All partners are insolvent B) All partners are solvent C) Some partners are insolvent D) None of the above

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Answer & Solution

Answer: Option C

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Current liabilities are equal to-

A) Current assets - Working capital B) Working capital - Current assets C) Current assets + Working capital D) None of these

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Answer & Solution

Answer: Option A

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The equation to find opening stock is

A) Opening stock = Cost of good sold - closing stock + Total purchase B) Opening stock = cost of goods sold - closing stock - Total purchase C) Opening stock = cost of goods sold + closing stock + Total purchase D) Opening stock = cost of goods sold + closing stock - Net purchase

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Answer & Solution

Answer: Option D

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Mortgage loan is shown in

A) Liabilities side of balance sheet B) Asset side of balance sheet C) Dr. side of profit and loss account D) None of these

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Answer & Solution

Answer: Option A

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When does the buyer get the ownership in the hire purchase method?

A) On signing the contrast B) On payment of first installment C) On payment of last installment D) When the seller so desires

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Answer & Solution

Answer: Option C

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If closing stock is given in adjustment then it would be shown in-

A) Trading account B) Asset side of balance sheet C) Both A and B D) None of the above

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Answer & Solution

Answer: Option C

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Which one of the following is not a generally accepted accounting principle:

A) Sales, revenues and incomes should not be anticipated or materially overstated B) There must be proper cut off accounting for inventories and liabilities for costs and expenses C) Non-recurring and extraordinary gains and losses should be recognised in the period they accrue, but should be shown separately from the usual operations D) Long-term investments in securities should ordinarily be carried at market quotations

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Answer & Solution

Answer: Option D

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Which of the following statement is wrong?

A) Minimum number of partner in partnership is three B) Minimum number of members in private company is two C) Sole-proprietorship is oldest form of business organisation D) It is necessary to register a public company

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Answer & Solution

Answer: Option A

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Over-capitalization results in:

A) Misapplication of the resources of the community B) Better application of the resources of the community C) Over-utilization of the resources of the community D) Causing no harm to the use of the resources of the community

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Answer: Option A

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Cash sales during the year - Rs. 46,000
Cash collected from customers during the year - Rs. 1,26,000
Amount regarded as collected from the customers at the end of the year decreased by Rs. 4,940 as compared to the collectable amount at the beginning of the year. One account of the amount of Rs. 1,300 was determined worthless during the year. The amount of credit sales during the year was

A) Rs. 1,27,700 B) Rs. 1,22,360 C) Rs. 1,32,940 D) Rs. 1,36,730

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Answer & Solution

Answer: Option B

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