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.
What type of expenses are paid out of Gross Profit?

A. General expenses

B. Financial expenses

C. Selling expenses

D. All of the above

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12.
Which of the following is NOT an example of intangible assets?

A. Franchise rights

B. Goodwill

C. Patents

D. Land

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13.
Which of the following is an example of business liability?

A. Land

B. Building

C. Cash

D. Creditors

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14.
The unfavorable balance of Profit and Loss account should be

A. Added to liabilities

B. Subtracted from current assets

C. Subtracted from capital

D. Subtracted from liabilities

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15.
Which of the following account will be credited, if business bought goods on credit from Mr. Z?

A. Purchases account

B. Mr. Z account

C. Cash account

D. Sales account

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16.
Interest on loan paid by business is an example of

A. Revenue expense

B. Income

C. Asset

D. Return outward

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17.
Which of the following account will be credited when a typewriter is sold that has been used in the office?

A. Office equipment account

B. Cash account

C. Sales account

D. Purchase account

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18.
The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the asset, is termed as

A. Appreciation

B. Depreciation

C. Fluctuation

D. None of the above

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19.
Which of the following item will be shown on debit side of debtors account?

A. Discount received

B. Return inwards

C. Discount allowed

D. Credit sales

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20.
When one or both aspects of a transaction are recorded in the wrong class or category of account, it is called

A. Error of principle

B. Error of omission

C. Error of commission

D. Error of original entry

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Accounting MCQ Questions and Solutions with Explanations | Commerce

11. What type of expenses are paid out of Gross Profit?

Answer & Solution

12. Which of the following is NOT an example of intangible assets?

Answer & Solution

13. Which of the following is an example of business liability?

Answer & Solution

14. The unfavorable balance of Profit and Loss account should be

Answer & Solution

15. Which of the following account will be credited, if business bought goods on credit from Mr. Z?

Answer & Solution

16. Interest on loan paid by business is an example of

Answer & Solution

17. Which of the following account will be credited when a typewriter is sold that has been used in the office?

Answer & Solution

18. The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the asset, is termed as

Answer & Solution

19. Which of the following item will be shown on debit side of debtors account?

Answer & Solution

20. When one or both aspects of a transaction are recorded in the wrong class or category of account, it is called

Answer & Solution

Read More Section(Accounting)

11.
What type of expenses are paid out of Gross Profit?

12.
Which of the following is NOT an example of intangible assets?

13.
Which of the following is an example of business liability?

14.
The unfavorable balance of Profit and Loss account should be

15.
Which of the following account will be credited, if business bought goods on credit from Mr. Z?

16.
Interest on loan paid by business is an example of

17.
Which of the following account will be credited when a typewriter is sold that has been used in the office?

18.
The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the asset, is termed as

19.
Which of the following item will be shown on debit side of debtors account?

20.
When one or both aspects of a transaction are recorded in the wrong class or category of account, it is called