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-9 section-16

Balance sheet shows financial position on a particular . . . . . . . . ?

A) Date B) Month C) 6 months D) Year

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Answer & Solution

Answer: Option A

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Sales book is a record of:

A) Only cash sales of goods B) Only sale of assets C) Only credit sales of goods D) All sales

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Answer: Option C

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Consider the following statements:
Assertion (A): Balance Sheet shows realisable value of business on a particular date.
Reason (R): Accounting provides all information needed by a businessman.
Now select your answer:

A) Both A and R are true, and R is the correct explanation of A B) Both A and R are true, and R is not the correct explanation of A C) A is true, but R is false D) A is false but R is true

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Answer: Option A

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When a partner draws a fixed sum at the beginning of each month, interest on total drawings will be equal to interest of . . . . . . . . at an agreed rate

A) 5 months B) 5.5 months C) 6 months D) 6.5 months

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Answer: Option D

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When purchase account is credited?

A) When goods are purchased on credit B) When goods are purchased on cash C) When goods are sold D) When goods are taken by proprietor for personal use

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Answer: Option D

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Match the following.

List-I	List-II
a. Expenses of scheme	1. Not transferable to capital reduction
b. Statutory reserve	2. Indicate and reduced
c. Balance sheet after reduction	3. Transfer difference to capital reserve
d. Reduction in paid-up value of shares	4. Debit capital reduction account

A) a-4, b-3, c-2, d-1 B) a-2, b-4, c-1, d-3 C) a-4, b-2, c-1, d-3 D) a-4, b-1, c-2, d-3

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Answer: Option D

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Share allotment account is when share allotment becomes due

A) Debit B) Credit C) Debit or Credit D) All of the above

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Answer: Option A

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Double entry system was started in-

A) India B) Italy C) England D) None of the above

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Answer: Option B

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A, B and C are partners in a firm sharing profits in the ratio $$\frac{2}{5}:\,\frac{2}{5}:\,\frac{1}{5}.$$ C retires from the firm and his share is bought by A and B in equal ratio. New profit sharing ratio will be.

A) $${\text{A}} = \frac{1}{2}:{\text{B}} = \frac{1}{2}$$ B) $${\text{A}} = \frac{3}{5}:{\text{B}} = \frac{2}{5}$$ C) $${\text{A}} = \frac{2}{5}:{\text{B}} = \frac{3}{5}$$ D) $${\text{A}} = \frac{1}{3}:{\text{B}} = \frac{2}{3}$$

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Answer: Option A

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Subsequent expenditures that extend the useful life, improve the quality of output, or reduce operating costs of an existing asset beyond their originally estimated levels are

A) Capital expenditures B) Revenue expenditures C) Deferred Revenue expenditures D) None of the above

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Answer: Option A

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