Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Section 20 Section 21 Section 22 Section 23 Section 24 Section 25 Section 26 Section 27 Section 28 Section 29 Section 30

11.
Any amount received towards endowment fund is a . . . . . . . . receipt.

A. Ordinary

B. Special

C. Revenue

D. Capital

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12.
Which of the following errors is revealed by trial balance?

A. Wrong amount entered in the book of original entry

B. Wrong amount entered in a ledger account

C. Complete omission of an entry from the book of original entry

D. All of these

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13.
Consistency with reference to application of accounting principles refers to the fact that:

A. Companies in the same industry use identical accounting procedures and methods, and are consistent

B. Income and assets have not been over stated

C. Accounting methods and procedures used have been consistently applied from year to year

D. All methods and procedures have been utilised

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14.
If some goods from business are given away as charity to a particular person or institution, it should be . . . . . . . .

A. debited to charity account

B. credited to charity account

C. debit sales account

D. debit to donation account

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15.
Generally, under single entry system:

A. only personal accounts are maintained

B. only personal, cash and bank accounts are maintained

C. all accounts are maintained

D. no account is maintained

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16.
While making an adjustment entry in respect of interest on capital, credit is made to:

A. Capital account

B. Interest on capital account

C. Profit & loss account

D. Interest account

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17.
. . . . . . . . supplies the management significant information in order to assist the management to discharge its various functions such as planning, control and decision making.

A. Financial accounting

B. Cost accounting

C. Management account

D. Human resource accounting

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18.
The distinction between capital and revenue is necessary for the preparation of . . . . . . . .

A. fund flow statement

B. receipts and payment account

C. final accounts

D. cash flow statement

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19.
Cost of goods sold - Rs. 13,300, Gross Profit - Rs. 3,200, Netprofit - Rs. 700, what is the amount of sales?

A. Rs. 14,000

B. Rs. 10,100

C. Rs. 16,500

D. Rs. 17,200

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20.
Match List-I (Items) with List-II (Standards) and select the correct answer using the options given below the lists:

List-I (Items) List-II (Standards)

a. Accounting for fixed assets 1. AS-9

b. Revenue recognition 2. AS-10

c. Depreciation accounting 3. AS-3

d. Cash flow statement 4. AS-6

A. a-2, b-3, c-4, d-1

B. a-4, b-1, c-2, d-3

C. a-2, b-1, c-4, d-3

D. a-4, b-3, c-2, d-1

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1 2 3 4 5 6 7 8 9 10

List-I (Items)	List-II (Standards)
a. Accounting for fixed assets	1. AS-9
b. Revenue recognition	2. AS-10
c. Depreciation accounting	3. AS-3
d. Cash flow statement	4. AS-6

Accounting MCQ Questions and Solutions with Explanations | Commerce

11. Any amount received towards endowment fund is a . . . . . . . . receipt.

Answer & Solution

12. Which of the following errors is revealed by trial balance?

Answer & Solution

13. Consistency with reference to application of accounting principles refers to the fact that:

Answer & Solution

14. If some goods from business are given away as charity to a particular person or institution, it should be . . . . . . . .

Answer & Solution

15. Generally, under single entry system:

Answer & Solution

16. While making an adjustment entry in respect of interest on capital, credit is made to:

Answer & Solution

17. . . . . . . . . supplies the management significant information in order to assist the management to discharge its various functions such as planning, control and decision making.

Answer & Solution

18. The distinction between capital and revenue is necessary for the preparation of . . . . . . . .

Answer & Solution

19. Cost of goods sold - Rs. 13,300, Gross Profit - Rs. 3,200, Netprofit - Rs. 700, what is the amount of sales?

Answer & Solution

20. Match List-I (Items) with List-II (Standards) and select the correct answer using the options given below the lists: List-I (Items) List-II (Standards) a. Accounting for fixed assets 1. AS-9 b. Revenue recognition 2. AS-10 c. Depreciation accounting 3. AS-3 d. Cash flow statement 4. AS-6

Answer & Solution

Read More Section(Accounting)

11.
Any amount received towards endowment fund is a . . . . . . . . receipt.

12.
Which of the following errors is revealed by trial balance?

13.
Consistency with reference to application of accounting principles refers to the fact that:

14.
If some goods from business are given away as charity to a particular person or institution, it should be . . . . . . . .

15.
Generally, under single entry system:

16.
While making an adjustment entry in respect of interest on capital, credit is made to:

17.
. . . . . . . . supplies the management significant information in order to assist the management to discharge its various functions such as planning, control and decision making.

18.
The distinction between capital and revenue is necessary for the preparation of . . . . . . . .

19.
Cost of goods sold - Rs. 13,300, Gross Profit - Rs. 3,200, Netprofit - Rs. 700, what is the amount of sales?

20.
Match List-I (Items) with List-II (Standards) and select the correct answer using the options given below the lists:

List-I (Items) List-II (Standards)

a. Accounting for fixed assets 1. AS-9

b. Revenue recognition 2. AS-10

c. Depreciation accounting 3. AS-3

d. Cash flow statement 4. AS-6