Accounting MCQ Questions and Solutions with Explanations

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-6 section-9

Creating provision for bad and Doubtful debts is based on which accounting concept?

A) Principal of disclosure B) Concept of stability C) Conservatism concept D) Principle of consistency

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Answer & Solution

Answer: Option C

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Who among the following can be appointed as a debenture trustee?

A) A scheduled bank carrying on commercial activity B) Beneficiary holding shares in a company C) Beneficiary entitled to receive the money which is to be paid by the company to the debenture trustee D) Who is not subject to any gurantee in respect of principal loans reserved by way of debentures or interest thereon

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Answer & Solution

Answer: Option D

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The most rigorous test of liquidity is:

A) Current Ratio B) Acid Test Ratio C) Absolute Ratio D) Stock Turnover Ratio

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Answer & Solution

Answer: Option C

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A machine was purchased for Rs. 10,000 and its life was estimated to be 3 years, and at the end of its life, its book value was Rs. 5,120. If depreciation is calculated according to Diminishing Balance method, the rate of depreciation would be:

A) 25% B) 15% C) 20% D) 10%

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Answer & Solution

Answer: Option C

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Bill discounted from bank is

A) Contingent liability B) Current liability C) Current assets D) None of the above

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Answer & Solution

Answer: Option A

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Profit on sale of sinking fund investment will be debited to

A) Profit and Loss A/c B) Sinking Fund A/c C) Sinking Fund Investment A/c D) Revaluation A/c

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Answer & Solution

Answer: Option C

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The current cost on producing 5 units is Rs. 100/-. If fixed cost is Rs. 40/- then what will be the total average cost of 5 units

A) Rs. 28 B) Rs. 60 C) Rs. 12 D) Rs. 140

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Answer & Solution

Answer: Option A

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When funds from operations are Rs. 42,000 and amount of depreciation on plant and machinery is Rs. 5,000, the amount of net profit will be

A) Rs. 37,000 B) Rs. 42,000 C) Rs. 47,000 D) a sum which cannot be computed

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Answer & Solution

Answer: Option A

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Opening Debtors	Rs. 10,000
Sales Returns	Rs. 7,000
Bad Debts	Rs. 3,000
Cash Received from Debtors	Rs. 40,000
Closing Debtor	Rs. 13,000

Find out the amount of credit sales.

A) Rs. 63,000 B) Rs. 53,000 C) Rs. 46,000 D) None of the above

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Answer & Solution

Answer: Option B

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Net working capital is equal to

A) Excess of total assets over total liabilities B) Excess of current assets over current liabilities C) Aggregate current assets of the firm D) Excess of total assets over total current liabilities

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Answer & Solution

Answer: Option B

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