Accounting MCQ Questions and Solutions with Explanations

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71.
Concept of Realisation implies:

A. When cash is received from debtors

B. When goods are delivered to customer

C. When order is received

D. None of these

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72.
Balance sheet is a:

A. Statement

B. Account

C. Ledger

D. Book

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73.
An entry of Rs. 500 was wrongly posted to wages account instead of machinery account, as wages are to be capitalised. It is an error of:

A. Commission

B. Omission

C. Principle

D. Clerical error

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74.
To test the liquidity of a concern, which of the following ratios are useful?
I. Acid test ratio
II. Capital turnover ratio
III. Bad debts to sales ratio
IV. Inventory turnover ratio
Select the correct answer using the options given below:

A. I and III

B. I and IV

C. II and IV

D. II and III

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75.
Preference shareholders are . . . . . . . . of the company:

A. creditors

B. owners

C. customers

D. borrowers

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76.
From the following find out the correct equation:
I. A represents opening stock
II. B represents purchases
III. C represents closing stock
IV. D represents cost of goods sold

A. A - C = D - B

B. A + B = D - C

C. D - A = B + C

D. None of these

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77.
Match List-I with List-II and select the correct answer using the options given below the lists:

List-I List-II

a. Income measurement 1. Accrues to owner's equity

b. Expense recognition 2. Revenue recognition

c. Basis for realisation in accounting 3. Matching revenues

d. Recognised revenue 4. Accounting period

A. a-3, b-4, c-2, d-1

B. a-3, b-4, c-1, d-2

C. a-2, b-3, c-4, d-1

D. a-2, b-3, c-1, d-4

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78.
Sales of old material must be shown on the credit side of . . . . . . . .

A. cash book

B. income and expenditure account

C. balance sheet

D. trading account

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79.
In triple column cash book, cash withdrawn from bank for office use will appear in:

A. debit side of the cash book only

B. both sides of the cash book

C. credit side of the cash book only

D. credit side of the bank account

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80.
The process of transferring the credit and debit items form a journal to their respective accounts in the ledger is termed as . . . . . . . .

A. Balancing

B. Invoicing

C. Double entry

D. Posting

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Income measurement	1. Accrues to owner's equity
b. Expense recognition	2. Revenue recognition
c. Basis for realisation in accounting	3. Matching revenues
d. Recognised revenue	4. Accounting period

Accounting MCQ Questions and Solutions with Explanations | Commerce

71. Concept of Realisation implies:

Answer & Solution

72. Balance sheet is a:

Answer & Solution

73. An entry of Rs. 500 was wrongly posted to wages account instead of machinery account, as wages are to be capitalised. It is an error of:

Answer & Solution

74. To test the liquidity of a concern, which of the following ratios are useful? I. Acid test ratio II. Capital turnover ratio III. Bad debts to sales ratio IV. Inventory turnover ratio Select the correct answer using the options given below:

Answer & Solution

75. Preference shareholders are . . . . . . . . of the company:

Answer & Solution

76. From the following find out the correct equation: I. A represents opening stock II. B represents purchases III. C represents closing stock IV. D represents cost of goods sold

Answer & Solution

Answer & Solution

78. Sales of old material must be shown on the credit side of . . . . . . . .

Answer & Solution

79. In triple column cash book, cash withdrawn from bank for office use will appear in:

Answer & Solution

80. The process of transferring the credit and debit items form a journal to their respective accounts in the ledger is termed as . . . . . . . .

Answer & Solution

Read More Section(Accounting)

71.
Concept of Realisation implies:

72.
Balance sheet is a:

73.
An entry of Rs. 500 was wrongly posted to wages account instead of machinery account, as wages are to be capitalised. It is an error of:

74.
To test the liquidity of a concern, which of the following ratios are useful?
I. Acid test ratio
II. Capital turnover ratio
III. Bad debts to sales ratio
IV. Inventory turnover ratio
Select the correct answer using the options given below:

75.
Preference shareholders are . . . . . . . . of the company:

76.
From the following find out the correct equation:
I. A represents opening stock
II. B represents purchases
III. C represents closing stock
IV. D represents cost of goods sold

78.
Sales of old material must be shown on the credit side of . . . . . . . .

79.
In triple column cash book, cash withdrawn from bank for office use will appear in:

80.
The process of transferring the credit and debit items form a journal to their respective accounts in the ledger is termed as . . . . . . . .