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

61.
Under net payment method, purchase consideration includes all payments made to the shareholders in the form of . . . . . . . .

A. equity share

B. preference share

C. cash

D. All of these

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62.
Depreciation deducted from the concerned . . . . . . . .

A. Liability

B. Asset

C. Expenses

D. Incomes

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63.
Purchases for office furniture on account is recorded in . . . . . . . .

A. general journal

B. cash book

C. purchases book

D. sales book

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64.
The term loan of Rs. 5,00,000 was received from IFCI. It was used as under:
I. Rs. 2,00,000 was advanced to suppliers for capital work-in-progress
II. Rs. 3,00,000 was used for financing the working capital
The interest payable would be treated:

A. on both I and II as capital expenditure

B. on I as capital expenditure and on II as revenue expenditure

C. on I as deferred expenditure and on II as revenue expenditure

D. on I as deferred revenue expenditure and on II as capital expenditure

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65.
Goods worth Rs. 24,000 were returned by X. The accountant, however, credited the sales returns account by Rs. 42,000. In order to rectify this error, what should be done?

A. Debit the sales return account by Rs. 42,000

B. Credit the sales return account by Rs. 24,000

C. Debit the sales return account by Rs. 66,000

D. Debit the sales return account by Rs. 18,000

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66.
Accounting records transactions in terms of:

A. Commodity units

B. Monetary units

C. Production units

D. None of these

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67.
While assertaining profit in single entry system the amount of additional capital introduced is:

A. added to the capital in the beginning

B. deducted from the capital in the beginning

C. added to the capital at the end

D. deducted from the capital at the end

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68.
Income and expenditure matches all . . . . . . . . receipts against . . . . . . . . payments pertaining to the relevant accounting years.

A. revenue, revenue

B. cash, cash

C. cash, credits

D. credit, cash

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69.
If trial a balance does not tally inspite of thorough scrutiny and the difference is substantial, then which one of the following courses would be accountant adopt?

A. Defer preparation of financial statements

B. Open suspense A/C

C. Write off the difference to profit and loss A/C

D. Ignore the difference and prepare financial statements

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70.
A return Inwards book is kept to record:

A. return of goods sold

B. returns of anything purchased

C. returns of goods purchased

D. returns of anything sold

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Accounting MCQ Questions and Solutions with Explanations | Commerce

61. Under net payment method, purchase consideration includes all payments made to the shareholders in the form of . . . . . . . .

Answer & Solution

62. Depreciation deducted from the concerned . . . . . . . .

Answer & Solution

63. Purchases for office furniture on account is recorded in . . . . . . . .

Answer & Solution

64. The term loan of Rs. 5,00,000 was received from IFCI. It was used as under: I. Rs. 2,00,000 was advanced to suppliers for capital work-in-progress II. Rs. 3,00,000 was used for financing the working capital The interest payable would be treated:

Answer & Solution

65. Goods worth Rs. 24,000 were returned by X. The accountant, however, credited the sales returns account by Rs. 42,000. In order to rectify this error, what should be done?

Answer & Solution

66. Accounting records transactions in terms of:

Answer & Solution

67. While assertaining profit in single entry system the amount of additional capital introduced is:

Answer & Solution

68. Income and expenditure matches all . . . . . . . . receipts against . . . . . . . . payments pertaining to the relevant accounting years.

Answer & Solution

69. If trial a balance does not tally inspite of thorough scrutiny and the difference is substantial, then which one of the following courses would be accountant adopt?

Answer & Solution

70. A return Inwards book is kept to record:

Answer & Solution

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61.
Under net payment method, purchase consideration includes all payments made to the shareholders in the form of . . . . . . . .

62.
Depreciation deducted from the concerned . . . . . . . .

63.
Purchases for office furniture on account is recorded in . . . . . . . .

64.
The term loan of Rs. 5,00,000 was received from IFCI. It was used as under:
I. Rs. 2,00,000 was advanced to suppliers for capital work-in-progress
II. Rs. 3,00,000 was used for financing the working capital
The interest payable would be treated:

65.
Goods worth Rs. 24,000 were returned by X. The accountant, however, credited the sales returns account by Rs. 42,000. In order to rectify this error, what should be done?

66.
Accounting records transactions in terms of:

67.
While assertaining profit in single entry system the amount of additional capital introduced is:

68.
Income and expenditure matches all . . . . . . . . receipts against . . . . . . . . payments pertaining to the relevant accounting years.

69.
If trial a balance does not tally inspite of thorough scrutiny and the difference is substantial, then which one of the following courses would be accountant adopt?

70.
A return Inwards book is kept to record: