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

1.
Which of the following is not a transaction?

A. Goods are purchased on cash basis for Rs.1000

B. Salaries are paid for the month of May 2010

C. Land is purchased for Rs. 10 lacs

D. An employee dismissed from the job

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2.
A promissory note is drawn by __ in favor of _

A. Drawer, Drawee

B. Maker, Payee

C. Payer, Payee

D. Drawer, Payee

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3.
____ principle requires that the same accounting method should be used from one accounting period to the next

A. Conservatism

B. Consistency

C. Business entity

D. Money measurement

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4.
The left side of an account is known as _ and the right side as __

A. Debit, Credit

B. Credit, Debit

C. Liability, Asset

D. None of the above

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5.
The cost of a small calculator is treated as an expense and not shown as an asset in a financial statement of a business entity due to

A. Materiality concept

B. Matching concept

C. Periodicity concept

D. Conservatism concept

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6.
A minimum quantity of stock always held as precaution against out of stock situation is called

A. Zero stock

B. Risk stock

C. Base stock

D. None of the above

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7.
Discounting of bill by the drawer is done with

A. Creditor

B. Drawee

C. Bank

D. Notary public

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8.
A bill of exchange when drawn requires

A. Noting

B. Discounting

C. Acceptance

D. None of the above

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9.
A bill of exchange is called a ____ by one who is liable to pay it on the due date

A. Bill receivable

B. Noted bill of exchange

C. Bill payable

D. None of the above

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10.
___ days of grace are allowed in case of time bills, for calculating date of maturity

A. 2

B. 4

C. 3

D. 5

Answer & Solution Discuss in Board Save for Later

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Accounting MCQ Questions and Solutions with Explanations | Commerce

1. Which of the following is not a transaction?

Answer & Solution

2. A promissory note is drawn by ______ in favor of _____

Answer & Solution

3. ____ principle requires that the same accounting method should be used from one accounting period to the next

Answer & Solution

4. The left side of an account is known as ___ and the right side as ____

Answer & Solution

5. The cost of a small calculator is treated as an expense and not shown as an asset in a financial statement of a business entity due to

Answer & Solution

6. A minimum quantity of stock always held as precaution against out of stock situation is called

Answer & Solution

7. Discounting of bill by the drawer is done with

Answer & Solution

8. A bill of exchange when drawn requires

Answer & Solution

9. A bill of exchange is called a ____ by one who is liable to pay it on the due date

Answer & Solution

10. ___ days of grace are allowed in case of time bills, for calculating date of maturity

Answer & Solution

Read More Section(Accounting)

1.
Which of the following is not a transaction?

2.
A promissory note is drawn by __ in favor of _

3.
____ principle requires that the same accounting method should be used from one accounting period to the next

4.
The left side of an account is known as _ and the right side as __

5.
The cost of a small calculator is treated as an expense and not shown as an asset in a financial statement of a business entity due to

6.
A minimum quantity of stock always held as precaution against out of stock situation is called

7.
Discounting of bill by the drawer is done with

8.
A bill of exchange when drawn requires

9.
A bill of exchange is called a ____ by one who is liable to pay it on the due date

10.
___ days of grace are allowed in case of time bills, for calculating date of maturity