MCQOPTIONS
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MCQOPTIONS
This section includes 466 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 451. |
Which of the following is/are fixed asset(s)? |
| A. | Closing inventory |
| B. | Fixed deposit in a bank |
| C. | Patents |
| D. | Prepaid expenses |
| Answer» D. Prepaid expenses | |
| 452. |
Which one of the following accounting equations is correct? |
| A. | Assets = Owner's equity |
| B. | Assets = Liabilities + Owner's equity |
| C. | Assets = Liabilities - Owner's equity |
| D. | Assets + Liabilities = Owner's equity |
| Answer» C. Assets = Liabilities - Owner's equity | |
| 453. |
The document inviting offers from public to subscribe for the debentures or shares of a body corporate is a |
| A. | Share certificate |
| B. | Debenture |
| C. | Fixed deposit receipt |
| D. | Prospectus |
| Answer» E. | |
| 454. |
The three column cash book represents |
| A. | Real accounts |
| B. | Nominal accounts |
| C. | Nominal and personal accounts |
| D. | Real, personal and nominal accounts |
| Answer» E. | |
| 455. |
Which one of the following statement is CORRECT about long term liabilities? |
| A. | These are due within one year |
| B. | These consist of all debts, payabke after 12 months |
| C. | In working capital, these are deducted from current assets |
| D. | All of the above |
| Answer» C. In working capital, these are deducted from current assets | |
| 456. |
Stock of a Trading concern consists of |
| A. | Raw material |
| B. | Work in progress |
| C. | Merchandise inventory |
| D. | All of the above |
| Answer» D. All of the above | |
| 457. |
Which of the following capital is taken up by the general public? |
| A. | Issued capital |
| B. | Subscribed capital |
| C. | Authorized capital |
| D. | Reserve capital |
| Answer» B. Subscribed capital | |
| 458. |
Commercial accounting is based on |
| A. | Single entry book keeping |
| B. | Double entry book keeping |
| C. | Both single and double entry book keeping |
| D. | Cash basis of book keeping |
| Answer» C. Both single and double entry book keeping | |
| 459. |
Debenture is also named as |
| A. | Share |
| B. | Bond |
| C. | Reserve |
| D. | Equity |
| Answer» C. Reserve | |
| 460. |
Which one of the following is INCORRECT about closing stock? |
| A. | It is added into current assets |
| B. | It is deducted from Material available for use |
| C. | It becomes opening stock of next year |
| D. | It reduces the resources of business |
| Answer» E. | |
| 461. |
Which of the following is used to record financial transactions in chronological (day-to-day) order? |
| A. | Voucher |
| B. | General Journal |
| C. | General Ledger |
| D. | Trial Balance |
| Answer» C. General Ledger | |
| 462. |
Which of the following is a selling expense? |
| A. | Any tax/freight is paid on purchases |
| B. | General salaries paid to laborers |
| C. | Tax & freight paid on sale |
| D. | Interest on deposits |
| Answer» D. Interest on deposits | |
| 463. |
Documentary evidence, in a specific format used to record the details of a transaction is known as |
| A. | Account |
| B. | Voucher |
| C. | Journal |
| D. | Ledger |
| Answer» C. Journal | |
| 464. |
What is nature of Capital account? |
| A. | Debit |
| B. | Credit |
| C. | Expenses |
| D. | Loss |
| Answer» C. Expenses | |
| 465. |
Interest on loan paid by business is an example of |
| A. | Revenue expense |
| B. | Income |
| C. | Asset |
| D. | Return outward |
| Answer» B. Income | |
| 466. |
Which of the following would NOT be considered as a component of 'cost' of stock? |
| A. | Transportation inward costs |
| B. | Import duties |
| C. | Salaries of selling staff |
| D. | Purchase price |
| Answer» D. Purchase price | |