Accounting MCQ Questions and Solutions with Explanations | Commerce

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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.
Ledger is also called . . . . . . . .

A. principal book of accounts

B. cash books

C. subsidiary books

D. petty cash book

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12.
The fundamental accounting equation, Assets = Equities + liabilities is the formal expression of:

A. dual aspect concept

B. matching concept

C. going - concern concept

D. money measurement concept

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13.
Which of the following errors are revealed by trial balance?

A. Omission of an amount from the trial balance

B. Posting of the wrong amount

C. Wrong totalling of the book of original entry

D. None of these

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14.
When a bill is drawn by A on B, it is debited in the books of A to . . . . . . . .

A. Cash account

B. B's account

C. Bills Receivable account

D. Bills Payable account

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15.
A business entity has assets of Rs. 26,000 and liabilities of Rs. 6,000. Owner's equity in this case is:

A. Rs. 32,000

B. Rs. 26,000

C. Rs. 20,000

D. Rs. 6,000

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16.
Excess of income over expenditure is shown on the . . . . . . . . side of income and expenditure account.

A. Credit

B. Debit

C. Upper

D. Lower

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17.
Final Account is:

A. one account

B. two account

C. three account

D. four account

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18.
When a bill is drawn by A on B and before the date of maturity, B becomes insolvent then in the books of A it is debited to . . . . . . . .

A. Bills receivable account

B. Bank account

C. B's account

D. Bank for collection of bills

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19.
When an existing company takes over the business of one or more existing companies, it is called . . . . . . . .

A. amalgamation

B. absorption

C. internal reconstruction

D. None of these

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20.
Both assets and owners equity would be increased by . . . . . . . .

A. capital brought in

B. purchase of an asset on credit

C. payment of creditors

D. proprietors drawings

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Accounting MCQ Questions and Solutions with Explanations | Commerce

11. Ledger is also called . . . . . . . .

Answer & Solution

12. The fundamental accounting equation, Assets = Equities + liabilities is the formal expression of:

Answer & Solution

13. Which of the following errors are revealed by trial balance?

Answer & Solution

14. When a bill is drawn by A on B, it is debited in the books of A to . . . . . . . .

Answer & Solution

15. A business entity has assets of Rs. 26,000 and liabilities of Rs. 6,000. Owner's equity in this case is:

Answer & Solution

16. Excess of income over expenditure is shown on the . . . . . . . . side of income and expenditure account.

Answer & Solution

17. Final Account is:

Answer & Solution

18. When a bill is drawn by A on B and before the date of maturity, B becomes insolvent then in the books of A it is debited to . . . . . . . .

Answer & Solution

19. When an existing company takes over the business of one or more existing companies, it is called . . . . . . . .

Answer & Solution

20. Both assets and owners equity would be increased by . . . . . . . .

Answer & Solution

Read More Section(Accounting)

11.
Ledger is also called . . . . . . . .

12.
The fundamental accounting equation, Assets = Equities + liabilities is the formal expression of:

13.
Which of the following errors are revealed by trial balance?

14.
When a bill is drawn by A on B, it is debited in the books of A to . . . . . . . .

15.
A business entity has assets of Rs. 26,000 and liabilities of Rs. 6,000. Owner's equity in this case is:

16.
Excess of income over expenditure is shown on the . . . . . . . . side of income and expenditure account.

17.
Final Account is:

18.
When a bill is drawn by A on B and before the date of maturity, B becomes insolvent then in the books of A it is debited to . . . . . . . .

19.
When an existing company takes over the business of one or more existing companies, it is called . . . . . . . .

20.
Both assets and owners equity would be increased by . . . . . . . .