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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-1 section-17

Each section contains 100 MCQs on Accounting .
1
Match the following.
List-I List-II
a. The formula for calculating the profit on reissue is . . . . . . . . 1. Article of Association
b. Right shares must be first offerred to existing . . . . . . . . 2. Security premium
c. Premium received on issue of debenture is credited to . . . . . . . . account 3. Amount forfeited less discount on reissue
d. Redeemable preference shares can be issued only when it is authorised by its . . . . . . . . 4. Equity shareholders
Discuss
Answer & Solution
Answer: Option C
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2
Accounting principles are based on
Discuss
Answer & Solution
Answer: Option A
Solution:
Accounting principles are developed to ensure that financial statements are reliable, practical, and useful for decision-making.

These principles are not based on personal opinions or arbitrary choices but are guided by practicability, meaning they should be easy to apply and suitable in real business situations.

Subjectivity is avoided in accounting as far as possible because it reduces reliability and comparability of financial information.

Convenience in recording is not a valid basis, as accounting focuses on accuracy and usefulness rather than mere ease.

Therefore, accounting principles are primarily based on practicability.

Hence, the correct answer is Practicability.
3
Four milkmen, A, B, C and D rented a pasture. A grazed 24 cows for 3 months; B grazed 10 cows for 5 months; C grazed 35 cows for 4 months; D grazed 21 cows for 3 months. If A's share of rent is Rs. 720, find the total rent of the field
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Answer & Solution
Answer: Option C
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4
Average profit of a firm is Rs. 40,000, Its total assets amounted to Rs. 4,00,000 and its liabilities to Rs. 1,00,000. If return is similar of same firm is 10% on capital employed, what will be the value of goodwill of this firm:
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Answer & Solution
Answer: Option C
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5
When working capital is Rs. 60,000 and current ratio is 3 : 1 the current liabilities will be:
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Answer & Solution
Answer: Option A
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6
Capital is equal to:
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Answer & Solution
Answer: Option C
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7
Credit sales of business assets are recorded in
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Answer & Solution
Answer: Option B
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8
Identify, which of the following partnership's characteristic is a disadvantage?
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Answer & Solution
Answer: Option D
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9
Goodwill is shown on
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Answer & Solution
Answer: Option A
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10
In the absence of any provision in the partnership agreement, partners are paid interest on partners loan @
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Answer & Solution
Answer: Option B
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