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 Section 26 Section 27 Section 28 Section 29 Section 30

41.
Trial balance is a proof that:

A. every transaction is recorded twice

B. no error remains in the books of accounts

C. books are authentically and correctly written

D. None of these

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42.
Any excess amount paid to preference share holders is debited to . . . . . . . . account.

A. realisation

B. preference shareholders

C. P&L

D. preference share capital

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43.
The account current method in which the days are calculated from the date of transaction to the commencement date is known as . . . . . . . .

A. Forward method

B. Epoch method

C. Daily balance method

D. Backward method

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44.
Receipts and payment account shows . . . . . . . .

A. income and expenditure

B. cash receipts and payments

C. assets and liabilities

D. profit on sale

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45.
The difference between gross dividend receivable and dividend received is debited to . . . . . . . .

A. interim dividend

B. tax deducted at source

C. net dividend

D. difference adjustment

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46.
Which one of the following statements is correct?

A. Depreciation is not the process of valuation of asset-it is a process of allocation of cost of asset to the period of its economic life

B. If the cost of machinery is more than the book value, then depreciation need not be provided

C. When the plant and machinery and maintained in good condition, through repairs and renewals, depreciation need not be provided

D. In the absence of any legal provisions, if the auditor finds that provision made for depreciation is inadequate, then he is not required to refer to it in his report

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47.
Financial statement in relation to a company includes:

A. Balance sheet

B. Statement of P&L

C. Cash flow statement

D. All of these

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48.
In case of accommodation bills, if one party becomes insolvent then that party credits the short remittance to:

A. deficiency account

B. cash account

C. loan account

D. bill account

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49.
Land was reported at its selling price which is substantially higher than its cost. The increase in value was included in the income statement, which accounting principle is violated?

A. Cost principle

B. Going concern concept

C. Entity concept

D. Conservatism

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50.
Accounting principles represent:

A. a consensus at a particular time to the recording of accounting transactions

B. inviolable laws fixed by the legal boards

C. laws fixed by accounting experts

D. laws fixed by the respective governments

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. Trial balance is a proof that:

Answer & Solution

42. Any excess amount paid to preference share holders is debited to . . . . . . . . account.

Answer & Solution

43. The account current method in which the days are calculated from the date of transaction to the commencement date is known as . . . . . . . .

Answer & Solution

44. Receipts and payment account shows . . . . . . . .

Answer & Solution

45. The difference between gross dividend receivable and dividend received is debited to . . . . . . . .

Answer & Solution

46. Which one of the following statements is correct?

Answer & Solution

47. Financial statement in relation to a company includes:

Answer & Solution

48. In case of accommodation bills, if one party becomes insolvent then that party credits the short remittance to:

Answer & Solution

49. Land was reported at its selling price which is substantially higher than its cost. The increase in value was included in the income statement, which accounting principle is violated?

Answer & Solution

50. Accounting principles represent:

Answer & Solution

Read More Section(Accounting)

41.
Trial balance is a proof that:

42.
Any excess amount paid to preference share holders is debited to . . . . . . . . account.

43.
The account current method in which the days are calculated from the date of transaction to the commencement date is known as . . . . . . . .

44.
Receipts and payment account shows . . . . . . . .

45.
The difference between gross dividend receivable and dividend received is debited to . . . . . . . .

46.
Which one of the following statements is correct?

47.
Financial statement in relation to a company includes:

48.
In case of accommodation bills, if one party becomes insolvent then that party credits the short remittance to:

49.
Land was reported at its selling price which is substantially higher than its cost. The increase in value was included in the income statement, which accounting principle is violated?

50.
Accounting principles represent: