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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-2

Each section contains 100 MCQs on Accounting .
1
The real accounts are accounts of Assets, Liabilities and
Discuss
Answer & Solution
Answer: Option C
Solution:
The real accounts are accounts of Assets, Liabilities and Capital. The accounting formula essentially shows that what the firm owns (its assets) is purchased by either what it owes (its liabilities) or by what its owners invest (its shareholders equity or capital).
2
If a transaction is completely omitted from the books of accounts, will it effect the agreement of Trial Balance?
Discuss
Answer & Solution
Answer: Option B
Solution:
If a transaction is completely omitted from the books of accounts, No it wont effect the agreement of Trial Balance.
3
_______ is the common base for preparing a trial balance
Discuss
Answer & Solution
Answer: Option A
Solution:
Ledger accounts is the common base for preparing a trial balance. This process is known as 'balancing off' the general ledger accounts. 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.
4
Which of the following is true about a trial balance?
Discuss
Answer & Solution
Answer: Option A
Solution:
Trial balance It lists down the balances of accounts. The debit balance values will be listed in the debit column of the trial balance and the credit value balance will be listed in the credit column.
5
Debit balance = Credit balance in a trial balance indicates that
Discuss
Answer & Solution
Answer: Option D
Solution:
Debit balance = Credit balance in a trial balance indicates that Mathematically Capital + Liabilities = Assets.
6
Trial Balance is commonly prepared
Discuss
Answer & Solution
Answer: Option B
Solution:
Trial Balance is commonly prepared at the end of an accounting period. It is usually prepared at the end of an accounting period to assist in the drafting of financial statements.
7
Which of the following will affect the agreement of a trial balance?
Discuss
Answer & Solution
Answer: Option B
Solution:
Partial omission of a transaction will affect the agreement of a trial balance. When only one aspect of a transaction is posted to the ledger, it is called as error of partial omission.
8
If debit balances = credit balances, trial balance only shows or checks the _________ and it does not indicate that no errors were made during recording and posting.
Discuss
Answer & Solution
Answer: Option A
Solution:
If debit balances = credit balances, trial balance only shows or checks the Arithmetic accuracy and it does not indicate that no errors were made during recording and posting.
9
Which of the following account with normal balance is shown at the debit side of a trial balance?
Discuss
Answer & Solution
Answer: Option D
Solution:
Cash account with normal balance is shown at the debit side of a trial balance.
10
Which of the following account with normal balance is shown at the credit side of a trial balance?
Discuss
Answer & Solution
Answer: Option D
Solution:
Accrued expenses account with normal balance is shown at the credit side of a trial balance.