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

41.
Which one of the following will be treated as revenue expenditure?

A. Cost incurred for a new exit as required under the local bodies, by laws

B. Interest paid on loan during the construction of works

C. Cost of pulling down on old building as also the payment made to the architect for the plan of a new building

D. A dealer in purchases sewing machines and spends some money on the repair of the machines damaged while goods in transit

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42.
Bill Receivable Book is a part of the:

A. Ledger

B. Balance Sheet

C. Journal

D. Profit and Loss Account

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43.
Preliminary expenses are an example of:

A. Deferred Revenue Expenditure

B. Revenue Expenditure

C. Capital Expenditure

D. Common Expenditure

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44.
Ayush started business on 1^st April, 1995 with a capital of Rs. 25,000 and a loan of Rs. 12,500. Total assets and liabilities at the end of 31^st March, 1996 amounted to Rs. 75,000 and Rs. 12,500 respectively. He invested a further capital of Rs. 12,500 during the year and withdrew Rs. 7,500 during the relevant financial, period. His closing capital and profits would be respectively:

A. Rs. 62,500 and Rs. 32,500

B. Rs. 50,000 and Rs. 40,000

C. Rs. 70,000 and Rs. 47,500

D. Rs. 55,000 and Rs. 42,500

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45.
Errors which affect one side of an account are called:

A. single sided errors

B. double sided errors

C. triple sided errors

D. compensation errors

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46.
Subscription received in advance is . . . . . . . .

A. an income

B. an asset

C. a liability

D. an expense

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47.
The term "Imprest system" is used in relation to:

A. Purchase book

B. Sales book

C. Cash book

D. Petty cash book

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48.
Which one of the following is an example of an intangible asset?

A. Preliminary expenses

B. Discount on issue of debentures

C. Investments

D. Copyrights

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49.
Premium on issue of debentures is a . . . . . . . .

A. capital loss

B. capital profit

C. revenue profit

D. revenue loss

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50.
The credit balance in the bank account is:

A. an asset

B. a liability

C. an expense

D. contingent liability

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. Which one of the following will be treated as revenue expenditure?

Answer & Solution

42. Bill Receivable Book is a part of the:

Answer & Solution

43. Preliminary expenses are an example of:

Answer & Solution

Answer & Solution

45. Errors which affect one side of an account are called:

Answer & Solution

46. Subscription received in advance is . . . . . . . .

Answer & Solution

47. The term "Imprest system" is used in relation to:

Answer & Solution

48. Which one of the following is an example of an intangible asset?

Answer & Solution

49. Premium on issue of debentures is a . . . . . . . .

Answer & Solution

50. The credit balance in the bank account is:

Answer & Solution

Read More Section(Accounting)

41.
Which one of the following will be treated as revenue expenditure?

42.
Bill Receivable Book is a part of the:

43.
Preliminary expenses are an example of:

45.
Errors which affect one side of an account are called:

46.
Subscription received in advance is . . . . . . . .

47.
The term "Imprest system" is used in relation to:

48.
Which one of the following is an example of an intangible asset?

49.
Premium on issue of debentures is a . . . . . . . .

50.
The credit balance in the bank account is: