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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-4

Each section contains 100 MCQs on Accounting .
81
No journal entry is required to be passed when there is
Discuss
Answer & Solution
Answer: Option B
Solution:
No journal entry is required to be passed when there is Normal loss. Normal loss increases the cost of production of the usable goods realized.
82
There must be a gap of at least ___ month between two calls
Discuss
Answer & Solution
Answer: Option B
Solution:
There must be a gap of at least 1 month between two calls.
83
Difference of total of debit and credit side of the trial balance is transferred to
Discuss
Answer & Solution
Answer: Option A
Solution:
Difference of total of debit and credit side of the trial balance is transferred to Suspense A/c. Suspense accounts are used when your trial balance is out of balance or when you have an unidentified transaction. The suspense account is a general ledger account that acts as a holding account until the error is discovered or the unknown transaction is identified.
84
Municipal tax Rs.6000 under dispute is a
Discuss
Answer & Solution
Answer: Option A
Solution:
Municipal tax Rs.6000 under dispute is a Contingent liability. Contingent liabilities are liabilities that may be incurred by an entity depending on the outcome of an uncertain future event such as the outcome of a pending lawsuit.
85
Joint venture account is a
Discuss
Answer & Solution
Answer: Option A
Solution:
Joint venture account is a Nominal account.
86
Capital expenditures are recorded in the
Discuss
Answer & Solution
Answer: Option C
Solution:
Capital expenditures are recorded in the Balance sheet. A capital expenditure is recorded as an asset, rather than charging it immediately to expense. It is classified as a fixed asset, which is then charged to expense over the useful life of the asset, using depreciation.
87
Recovery of bad debt is a
Discuss
Answer & Solution
Answer: Option B
Solution:
Recovery of bad debt is a Revenue receipt. Revenue receipts are money received by a business as a result of its normal business operations.
88
Bills receivable is a
Discuss
Answer & Solution
Answer: Option C
Solution:
Bills receivable is a Current asset. Bills receivable is often used as an alternative term for accounts receivable but more specifically relates to amounts due to a business under bills of exchange.
89
The party who sends the goods for sales on fixed commission basis is known as
Discuss
Answer & Solution
Answer: Option D
Solution:
The party who sends the goods for sales on fixed commission basis is known as Consignor. Person or firm (usually the seller) who delivers a consignment to a carrier for transporting it to a consignee (usually the buyer) named in the transportation documents.
90
Endorsement, discounting and collection of bills of exchange is made by
Discuss
Answer & Solution
Answer: Option D
Solution:
Endorsement, discounting and collection of bills of exchange is made by Drawer. The individual or firm that issues or signs a draft instructing the drawee to pay a specified sum of money to, or to the order of, a named person (payee), or to bearer.