Miscellaneous in Commerce MCQ Questions and Solutions with Explanations

Miscellaneous in Commerce MCQ Questions and Solutions with Explanations | Commerce

Miscellaneous in Commerce 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. Miscellaneous in Commerce 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-1

A business has the following items in it:
Land Rs. 1,500,000
Machinery Rs. 80,000
Cash Rs. 20,000
Owners equity Rs. 900,000
Loan Rs. 500,000
Creditors?

A) Rs. 200,000 B) Rs. 700,000 C) Rs. 800,000 D) Rs. 1,100,000

Discuss

Answer & Solution

Answer: Option A

Solution:

The accounting equation is Assets = Liabilities + Owners' Equity.

In this case:

Assets = Land + Machinery + Cash = 1,500,000 + 80,000 + 20,000 = Rs. 1,600,000

Liabilities + Owners' Equity = Loan + Creditors + Owners' Equity

1,600,000 = 500,000 + Creditors + 900,000

Solving for Creditors:

1,600,000 - 500,000 - 900,000 = Creditors

Creditors = 200,000

Therefore, the amount for Creditors is Rs. 200,000.

Accounting principles are generally based upon:

A) Practicability B) Subjectivity C) Convenience in recording D) None of the above

Discuss

Answer & Solution

Answer: Option A

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

The cash discount allowed to a debtor should be credited to:

A) Discount a/c B) Customer a/c C) Sales a/c D) None of these

Discuss

Answer & Solution

Answer: Option B

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

Which one of the following items would fall under the definition of a liability?

A) Cash B) Debtor C) Owner's equity D) None of these

Discuss

Answer & Solution

Answer: Option C

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

Which of the following is not related with Money Measurement Concept?

A) All business transaction should be expressed only in money B) The transactions which cannot be expressed in money, will not be recorded in accounting books C) Business is treated as separate from the proprietor D) None of these

Discuss

Answer & Solution

Answer: Option B

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

Content of income statement

A) Trading account B) Profit and loss account C) Balance sheet D) All of the above

Discuss

Answer & Solution

Answer: Option D

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

Which of the following is not a part of Production Cost Budget?

A) Material Budget B) Labour Budget C) Cash Budget D) Plant Budget E) Sales Budget

Discuss

Answer & Solution

Answer: Option C

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

Which of the following sanctions foreign exchange for import of goods:

A) Nationalised Banks B) Exim Bank C) Reserve Bank of India D) Ministry of External Affairs

Discuss

Answer & Solution

Answer: Option C

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

The business combination which engages in the manufacture of different kinds of products of allied nature is called:

A) Vertical combination B) Lateral combination C) Horizontal combination D) Circular combination

Discuss

Answer & Solution

Answer: Option B

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

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

List I	List II
a. Rival firms	1. External Environment
b. Technology	2. Social and cultural environment
c. Improving quality	3. Internal environment
d. Ethics business	4. Global environment

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

Discuss

Answer & Solution

Answer: Option C

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