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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-9 section-1

Each section contains 100 MCQs on Accounting .
81
Which of the following is a type of cash receipt journal + cash payment journal?
Discuss
Answer & Solution
Answer: Option C
Solution:
Cash book is a type of cash receipt journal + cash payment journal. A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals.
82
Cash purchases is recorded in which of the following specialized journals?
Discuss
Answer & Solution
Answer: Option D
Solution:
Cash purchases is recorded in Cash payments journal. Cash payment journal or cash disbursement journal is used to record all cash payments made by the business.
83
A brief explanation recorded below every entry in General Journal is commonly known as
Discuss
Answer & Solution
Answer: Option A
Solution:
A brief explanation recorded below every entry in General Journal is commonly known as Narration. A short explanation of each transaction is written under each entry which is called narration.
84
Debit note is the basis for recording a transaction in which of the following journals?
Discuss
Answer & Solution
Answer: Option D
Solution:
Debit note is the basis for recording a transaction in Purchase return journal. The source document for recording entries in the purchases return journal is generally a debit note.
85
Credit note is the basis for recording a transaction in which of the following journals?
Discuss
Answer & Solution
Answer: Option B
Solution:
Credit note is the basis for recording a transaction in Sales return journal. A credit note or credit memo is a commercial document issued by a seller to a buyer.
86
Specialized journals are more adequate for which type of businesses?
Discuss
Answer & Solution
Answer: Option B
Solution:
Specialized journals are more adequate for Big businesses.
87
Transferring entries from journal to ledger account is commonly known as
Discuss
Answer & Solution
Answer: Option C
Solution:
Transferring entries from journal to ledger account is commonly known as Posting. Posting refers to the process of transferring entries in the journal into the accounts in the ledger. Posting to the ledger is the classifying phase of accounting.
88
An 'account' records the ______ in the balance of an item
Discuss
Answer & Solution
Answer: Option C
Solution:
An 'account' records the Increase or decrease in the balance of an item. An account is an individual accounting record of increase and decrease in a specific asset, liability or stockholders equity item.
89
_____ will be credited if goods are given as charity
Discuss
Answer & Solution
Answer: Option C
Solution:
Purchases will be credited if goods are given as charity. When accounting for goods given as charity, purchases are reduced with the exact cost of goods contributed. The amount is reduced from purchases in the trading account. It is shown as an expense on the debit side of the income statement.
90
Which of the following is known as the base for preparing trial balance?
Discuss
Answer & Solution
Answer: Option C
Solution:
Ledger account is known as the base for preparing trial balance. The trial balance can then be prepared by listing each closing balance from the general ledger accounts as either a debit or a credit balance.