Accounting MCQ Questions and Solutions with Explanations

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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-2 section-9

Each section contains 100 MCQs on Accounting .

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
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Section 17
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Section 19
Section 20
Section 21
Section 22
Section 23
Section 24
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Section 26
Section 27
Section 28
Section 29
Section 30

Match List-I with List-II and select the correct answer:

List-I	List-II
a. Credit purchase of an asset	1. Purchase Return
b. Cash sales of an asset	2. Sales Return
c. Return inward	3. Cash Book
d. Return outward	4. Journal Proper

A) a-1, b-2, c-3, d-4 B) a-3, b-1, c-4, d-2 C) a-4, b-3, c-2, d-1 D) a-1, b-3, c-2, d-4

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Which of the following is not an example of contingent liability?

A) Liability under guarantee B) Interim dividend C) Liability in respect of bills discounted D) None of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

The current ratio of a firm is 2 : 1. Which one of the following suggestion would improve the ratio?

A) To pay a current liability B) To borrow money for a short period on an interest bearing promissory note C) To purchase goods for cash D) To give an interest bearing promissory note to a creditor in payment of the full amount due to him

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

The convention of conservation will have the effect of-

A) overstatements of assets B) understatements of assets C) understatements of liabilities D) understatements of provision for bad and doubtful debts

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Horizontal analysis is

A) Dynamic analysis B) Average analysis C) Trend analysis D) Static analysis

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

The liquidity position of a business enterprise is best reflected by:

A) Current ratio and debtors turnover ratio B) Quick ratio and asset turnover ratio C) Current ratio and net profit ratio D) Quick ratio and ROI

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Which one of the follwoing is not a function of accounting?

A) Keeping systematic record B) Protecting the properties of the Business C) Maximising the results D) Meeting legal requirements

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

A company issued shares of Rs. 100 each on which Rs. 80 has been paid-up and the company declares a dividend of 25%. The amount of dividend per share comes to Rs. 20. On the basis of normal rate of return of 10%, the market value of share will be

A) Rs. 40/40 B) Rs. 120/120 C) Rs. 160/160 D) Rs. 200/200

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

What is the main function of accounting?

A) Recording of economic data B) Provide information base for work C) Recording and classification of business transaction D) Achievement of non-economic goals

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Assertion (A) The Partnership Act does not make it obligatory that a firm must a deed in writing.
Reason (R) It is better to have it in writing to avoid confusion.

A) (A) is true, but (R) is false B) (A) is false, but (R) is true C) Both (A) and (R) are true D) Both (A) and (R) are false

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

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Accounting MCQ Questions and Solutions with Explanations | Commerce