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.
Consider the following statement, while preparing annual financial statements, the balance of bills receivable account can be treated as-
I. an accrued income
II. an item of assets
III. a "personal account" balance
Of these statement:

A. II and III are correct

B. I and III are correct

C. I and II are correct

D. None of these

Answer & Solution Discuss in Board Save for Later

2.
'Bank over draft' should be classified as:

A. Current asset

B. Current liability

C. Intengible asset

D. Intangible asset

Answer & Solution Discuss in Board Save for Later

3.
Error of commission do not allow . . . . . . . .

A. correct totalling of the balance sheet

B. correct totalling of the trial balance

C. the trial balance to agree

D. correct totalling of the day book

Answer & Solution Discuss in Board Save for Later

4.
Shares which carry preferential rights are called . . . . . . . .

A. equity shares

B. preference shares

C. sweaty equity

D. green shoe

Answer & Solution Discuss in Board Save for Later

5.
When an incoming partner purchases his share from any one of the existing partners, then:

A. total assets of the firm do not change

B. total assets of the firm will be augmented to the extent of payment received from the new partner

C. total assets of the firm will be reduced to the extent of payment received from the new partner

D. change in total assets of the firm will depend upon the new profit sharing ratio of the partners

Answer & Solution Discuss in Board Save for Later

6.
Which of the following is considered as an asset while calculating purchase consideration?

A. Goodwill

B. Patent

C. Trademark

D. All of these

Answer & Solution Discuss in Board Save for Later

7.
A firm which keeps its books of accounts on single entry system has opening balance and closing balance of Bills Receivable as Rs. 9,000 and Rs. 11,000 respectively. Bills collected during the financial period amount to Rs. 20,000. Bills receivable received during the financial period amount to:

A. Rs. 22,000

B. Rs. 18,000

C. Rs. 12,000

D. Rs. 11,000

Answer & Solution Discuss in Board Save for Later

8.
Reinsurance is common in . . . . . . . .

A. life insurance

B. general insurance

C. marine insurance

D. None of these

Answer & Solution Discuss in Board Save for Later

9.
When a bill drawn by A and B endorsed to C is dishonoured on the due date, it is credited in the books of A to . . . . . . . .

A. Bank account

B. Bills receivable account

C. Bank for collection of bills account

D. C's account

Answer & Solution Discuss in Board Save for Later

10.
Any revenue expense for when a separate fund is available will be . . . . . . . .

A. debited to the separate fund

B. debited to income and expenditure account

C. capital issued and shown in the balance sheet

D. credited to the separate fund

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

Accounting MCQ Questions and Solutions with Explanations | Commerce

1. Consider the following statement, while preparing annual financial statements, the balance of bills receivable account can be treated as- I. an accrued income II. an item of assets III. a "personal account" balance Of these statement:

Answer & Solution

2. 'Bank over draft' should be classified as:

Answer & Solution

3. Error of commission do not allow . . . . . . . .

Answer & Solution

4. Shares which carry preferential rights are called . . . . . . . .

Answer & Solution

5. When an incoming partner purchases his share from any one of the existing partners, then:

Answer & Solution

6. Which of the following is considered as an asset while calculating purchase consideration?

Answer & Solution

7. A firm which keeps its books of accounts on single entry system has opening balance and closing balance of Bills Receivable as Rs. 9,000 and Rs. 11,000 respectively. Bills collected during the financial period amount to Rs. 20,000. Bills receivable received during the financial period amount to:

Answer & Solution

8. Reinsurance is common in . . . . . . . .

Answer & Solution

9. When a bill drawn by A and B endorsed to C is dishonoured on the due date, it is credited in the books of A to . . . . . . . .

Answer & Solution

10. Any revenue expense for when a separate fund is available will be . . . . . . . .

Answer & Solution

Read More Section(Accounting)

1.
Consider the following statement, while preparing annual financial statements, the balance of bills receivable account can be treated as-
I. an accrued income
II. an item of assets
III. a "personal account" balance
Of these statement:

2.
'Bank over draft' should be classified as:

3.
Error of commission do not allow . . . . . . . .

4.
Shares which carry preferential rights are called . . . . . . . .

5.
When an incoming partner purchases his share from any one of the existing partners, then:

6.
Which of the following is considered as an asset while calculating purchase consideration?

7.
A firm which keeps its books of accounts on single entry system has opening balance and closing balance of Bills Receivable as Rs. 9,000 and Rs. 11,000 respectively. Bills collected during the financial period amount to Rs. 20,000. Bills receivable received during the financial period amount to:

8.
Reinsurance is common in . . . . . . . .

9.
When a bill drawn by A and B endorsed to C is dishonoured on the due date, it is credited in the books of A to . . . . . . . .

10.
Any revenue expense for when a separate fund is available will be . . . . . . . .