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

1.
In case a sports fund is kept expenses on account of sports events should be:

A. charged to sports fund

B. charged to the income and expenditure account

C. Taken to the balance sheet on the asset side

D. Taken to the balance sheet on the liability side

Answer & Solution Discuss in Board Save for Later

2.
Match List-I (Item of expenditure/receipt) with List-II (Nature of expenditure/receipt) and select the correct answer using the options given below the lists:

List-I List-II

a. Carriage charges on a new machine purchased for factory 1. Revenue receipt

b. Legal expenses incurred in defending a case of violation of a provision of Factories Act 2. Revenue expenditure

c. Grant-in-aid received from the Government for the construction of a building 3. Deferred revenue expenditure

d. Amount received for a part of the office building sublet 4. Capital expenditure

5. Capital receipt

A. a-2, b-3, c-1, d-5

B. a-4, b-2, c-5, d-1

C. a-3, b-4, c-1, d-5

D. a-4, b-3, c-1, d-5

Answer & Solution Discuss in Board Save for Later

3.
A credit sale of goods to Shiva should be debited to . . . . . . . .

A. Sales account

B. Goods account

C. Shiva account

D. Purchase account

Answer & Solution Discuss in Board Save for Later

4.
If a receipt of Rs. 200 from Rajesh out debtor has not been recorded in the books, the profit would show:

A. an increase of Rs. 200

B. a decrease of Rs. 200

C. neither an increase nor a decrease

D. none of these

Answer & Solution Discuss in Board Save for Later

5.
Under the annuity method the amount of total depreciation is determined by:

A. deducting the scrap value from the cost of the asset

B. deducting the amount of interest from the cost of the asset

C. adding the cost of the assets and interest there on

D. adding the cost of the assets and expected cost of maintenance

Answer & Solution Discuss in Board Save for Later

6.
A company may resort to "window dressing" by manipulating the data such as:
I. inventory valuation
II. omission of liability for goods purchased
III. treating a short-term liability long-term debt
IV. recording in advance cash receipts applicable to next accounting period

A. I, III and IV

B. II and IV

C. I, II and III

D. I, II, III and IV

Answer & Solution Discuss in Board Save for Later

7.
Which of the following errors in an error of principle?

A. Rs. 1000 received from Ganesh has been debited to his account

B. Purchase of Rs. 3000 has been entered in the sales journal

C. Repairs to machinery have been debited to machinery account

D. Repairs to scooter have been debited to repairs account

Answer & Solution Discuss in Board Save for Later

8.
A business is considered to be having and indefinite life according to:

A. accounting period concept

B. cost concept

C. going concern concept

D. dual aspect concept

Answer & Solution Discuss in Board Save for Later

9.
Interest on non-performing assets should be recognized on . . . . . . . . basis.

A. actually received

B. accrual

C. standard

D. None of these

Answer & Solution Discuss in Board Save for Later

10.
The amount brought in by the proprietor in the business should be credited to:

A. cash account

B. capital account

C. drawing account

D. bank account

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Carriage charges on a new machine purchased for factory	1. Revenue receipt
b. Legal expenses incurred in defending a case of violation of a provision of Factories Act	2. Revenue expenditure
c. Grant-in-aid received from the Government for the construction of a building	3. Deferred revenue expenditure
d. Amount received for a part of the office building sublet	4. Capital expenditure
	5. Capital receipt

Accounting MCQ Questions and Solutions with Explanations | Commerce

1. In case a sports fund is kept expenses on account of sports events should be:

Answer & Solution

Answer & Solution

3. A credit sale of goods to Shiva should be debited to . . . . . . . .

Answer & Solution

4. If a receipt of Rs. 200 from Rajesh out debtor has not been recorded in the books, the profit would show:

Answer & Solution

5. Under the annuity method the amount of total depreciation is determined by:

Answer & Solution

6. A company may resort to "window dressing" by manipulating the data such as: I. inventory valuation II. omission of liability for goods purchased III. treating a short-term liability long-term debt IV. recording in advance cash receipts applicable to next accounting period

Answer & Solution

7. Which of the following errors in an error of principle?

Answer & Solution

8. A business is considered to be having and indefinite life according to:

Answer & Solution

9. Interest on non-performing assets should be recognized on . . . . . . . . basis.

Answer & Solution

10. The amount brought in by the proprietor in the business should be credited to:

Answer & Solution

Read More Section(Accounting)

1.
In case a sports fund is kept expenses on account of sports events should be:

3.
A credit sale of goods to Shiva should be debited to . . . . . . . .

4.
If a receipt of Rs. 200 from Rajesh out debtor has not been recorded in the books, the profit would show:

5.
Under the annuity method the amount of total depreciation is determined by:

6.
A company may resort to "window dressing" by manipulating the data such as:
I. inventory valuation
II. omission of liability for goods purchased
III. treating a short-term liability long-term debt
IV. recording in advance cash receipts applicable to next accounting period

7.
Which of the following errors in an error of principle?

8.
A business is considered to be having and indefinite life according to:

9.
Interest on non-performing assets should be recognized on . . . . . . . . basis.

10.
The amount brought in by the proprietor in the business should be credited to: