ExamVeda
Login
Home

Accounting MCQ Questions and Solutions with Explanations | Commerce

Accounting MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Accounting MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-1 section-4

Each section contains 100 MCQs on Accounting .
1
The three column cash book represents
Discuss
Answer & Solution
Answer: Option D
Solution:
The three column cash book represents Real, personal and nominal accounts. The three column cash book (also known as triple column cash book) has three money columns on both debit and credit side – one on each side for recording discount, cash and bank amounts.
2
Carriage inwards refers to the cost of transportation for
Discuss
Answer & Solution
Answer: Option A
Solution:
Carriage inwards refers to the cost of transportation for Purchase of materials. The carriage inwards costs are considered to be part of the cost of items purchased, since an asset's cost is defined as all costs that are necessary to get the asset in place and ready for use.
3
Right shares are the shares
Discuss
Answer & Solution
Answer: Option C
Solution:
Right shares are the shares Offered to the existing equity shareholders. A rights offering (rights issue) is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings.
4
Which of the following is a real account?
Discuss
Answer & Solution
Answer: Option B
Solution:
Cash account is a real account. Real accounts show up on a company's balance sheet, which is the financial statement that lists all the accounts that a company has and their balances.
5
Which of the following is not an item of revenue expenditure?
Discuss
Answer & Solution
Answer: Option C
Solution:
Customs duty paid in connection with the import of equipment is not an item of revenue expenditure. Customs duty paid on import of raw materials. It is capital expenditure.
6
Which of the following is/are fixed asset(s)?
Discuss
Answer & Solution
Answer: Option C
Solution:
Patents are fixed assets. The accounting process for patents is similar to other fixed assets. Companies allocate or amortize the costs over the life of the patent.
7
The expenses that have fallen due for payment but not paid are
Discuss
Answer & Solution
Answer: Option A
Solution:
The expenses that have fallen due for payment but not paid are Outstanding expenses. Outstanding expenses are those expenses which have been incurred during the current accounting period and are due to be paid, however, the payment is not made.
8
Which of the following subsidiary books serves the purpose of ledger too, in addition to the recording of accounting transaction?
Discuss
Answer & Solution
Answer: Option D
Solution:
Cash Book serves the purpose of ledger too, in addition to the recording of accounting transaction. A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. Entries in the cash book are then posted into the general ledger.
9
Accounting is the process of matching
Discuss
Answer & Solution
Answer: Option B
Solution:
Accounting is the process of matching Revenues and costs. The matching concept is an accounting practice whereby firms recognize revenues and their related expenses in the same accounting period. Firms report "revenues," that is, along with the "expenses" that brought them.
10
Which of the following event is subject matter of Accounting?
Discuss
Answer & Solution
Answer: Option C
Solution:
Payment of Rs.1000 to bank in discharge of outstanding loan is subject matter of Accounting.