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-21

The head office of "The Institute of Cost and Works Accountants of India" is located at

A) Delhi B) Mumbai C) Chennai D) Kolkata

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Answer & Solution

Answer: Option D

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If trade creditors are Rs. 10,000 unpaid expenses 10% of creditors; current rato 2 : 1 and stock Rs. 7,000, then the quick assets will be:

A) Rs. 10,000 B) Rs. 12,000 C) Rs. 14,000 D) Rs. 15,000

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Answer & Solution

Answer: Option D

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If the preference shares are to be redeemed at a premium, the amount of premium may be paid from

A) Security premium or profit and loss A/c B) Share-capital account C) Profit and loss A/c D) Capital redemption fund

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Answer & Solution

Answer: Option A

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A and B are partners who share profit and loss equally. A with drawing Rs. 400 regularly at the end of each month for half year ended at 30^th June 2008. What will be the amount of interest if 5% p.a. interest is charged on drawing?

A) Rs. 200 B) Rs. 100 C) Rs. 25 D) Rs. 50

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Answer & Solution

Answer: Option C

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Given below are two statements, one labelled as Assertion (A) and the other as Reason (R)
Assertion (A): Gross profit ratio is calculated on the basis of net sales.
Reason (R): Gross profit ratio measure overall profitability of a concern.
Choose the correct answer:

A) Both (A) and (R) are true and (R) is correct explanation of (A) B) Both (A) and (R) are true but (R) is not be 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 C

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The difference between 'subscribed capital' and 'called up capital' is called

A) Calls in arrear B) Calls in advance C) Uncalled capital D) Paid up capital

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Answer & Solution

Answer: Option C

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Wages paid for installation of new machines is debited to wages account. This is an error of

A) Omission B) Principle C) Sumation D) Wrong account

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Answer & Solution

Answer: Option B

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The Indian Accounting Standard 10 is related to

A) Valuation of Inventories B) Accounting for Government Grants C) Depreciation Accounting D) Accounting for fixed Assets

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Answer & Solution

Answer: Option D

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Assertion (A): Personal transactions of the business owners are not recorded in the books.
Reason (R): According to the business entity concept, each business enterprise is considered an accounting unit separate from owners.

A) Both (A) and (R) are correct, and (R) is the correct explanation of (A) B) Both (A) and (R) are correct, but (R) is not the cor rect explanation of (A) C) (A) is correct, but (R) is incorrect D) (A) is incorrect, but (R) is correct

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Answer & Solution

Answer: Option A

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Net working Capital refers to:

A) Current assets B) Current assets minus current liabilities C) Equity share capital minus fixed assets D) Retained earnings

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Answer & Solution

Answer: Option B

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