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-1 section-13

Income and expenditure account of a non-profit organization is a

A) Real account B) Nominal account C) Personal account D) Representative personal account

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Answer & Solution

Answer: Option B

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When accounting standard board of India is constituted?

A) 1969 B) 1977 C) 1918 D) 2007

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Answer & Solution

Answer: Option B

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Following information is given to you:

Sales	Rs. 4,00,000
Fixed cost	Rs. 1,80,000
Variable cost	Rs. 2,00,000

Calculate Break Even Point (BEP) of sales

A) Rs. 6,53,800 B) Rs. 5,52,300 C) Rs. 5,53,846 D) Rs. 5,67,803 E) Rs. 6,50,555

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Answer & Solution

Answer: Option C

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Which of the following transactions has no effect in the current ratio?

A) Machinery purchased for cash B) Motor car sold for cash C) Preference shares redeemed D) Bills receivables collected

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Answer & Solution

Answer: Option D

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Which of the following items will result in flow of funds:

A) Credit sale of the Building B) Issue of Bonus Shares C) Goodwill written off D) Transfer of profit to General Reserve

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Answer & Solution

Answer: Option A

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On using reducing balance method on an asset of Rs. 20,000 at the rate of 10% per annum, depreciation for third year will be:

A) Rs. 6,000 B) Rs. 1,800 C) Rs. 1,620 D) Rs. 2,000

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Answer & Solution

Answer: Option C

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If the period for writing-off the short working has expired then it is transferred to which account by lessee?

A) Profit and Loss A/c B) Land owner A/c C) Royalty A/c D) Minimum rent A/c

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Answer & Solution

Answer: Option A

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Assertion (A): Cash flow Statement and Fund Flow Statement disclose same information.
Reason (R): Both are prepared out of the same date
You are to examine these two statements carefully and select the answers:

A) Both (A) and (R) are true and (R) is the correct explanation of (A) B) Both (A) and (R) are true, but (R) is not 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 & Solution

Answer: Option D

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Which of the following is not an accounting principle?

A) Dual aspect concept B) Cost concept C) Principle of materiality D) Principle of truthfullness

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Answer & Solution

Answer: Option D

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Cost of Asset = Rs. 21,000
Scrap value = Rs. 1,000
Depreciation rate = 10% p.a.
What will be the depreciation for the second year if depreciation is charged by straight line method?

A) Rs. 2,100 B) Rs. 2,000 C) Rs. 2,200 D) Rs. 2,400

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Answer & Solution

Answer: Option B

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