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.
| 101. |
*/*_A Trial Balance contains the balances of? |
| A. | Only Real A/c |
| B. | Real A/c and Nominal A/c |
| C. | Personal A/c |
| D. | Both 'b' and 'c' |
| Answer» E. | |
| 102. |
*/*_Commission to promote credit sale by consignee is known as? |
| A. | Del credere commission |
| B. | Over riding commission |
| C. | Ordinary commission |
| D. | Special commission |
| Answer» B. Over riding commission | |
| 103. |
*/*_One of the Fundamental accounting assumption is? |
| A. | Materiality |
| B. | Going concern |
| C. | Business entity |
| D. | Dual aspect |
| Answer» C. Business entity | |
| 104. |
*/*_Provision for bad debts is made as per the? |
| A. | Conservatism concept |
| B. | Cost concept |
| C. | Consistency concept |
| D. | Going concern concept |
| Answer» B. Cost concept | |
| 105. |
*/*_Which of the following is a leverage ratio?? |
| A. | Debt equity ratio |
| B. | Current ratio |
| C. | Quick ratio |
| D. | Earning power |
| Answer» B. Current ratio | |
| 106. |
*/*_When will the bill mature if the date of maturity of a bill is a holiday? |
| A. | Holiday itself |
| B. | Other agreed day |
| C. | Preceding working day |
| D. | Next working day |
| Answer» D. Next working day | |
| 107. |
*/*_Accounts payable has ____ balance? |
| A. | Credit |
| B. | Debit |
| C. | Unfavorable |
| D. | Favorable |
| Answer» B. Debit | |
| 108. |
*/*_Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation is termed as? |
| A. | Contingent liability |
| B. | Liability |
| C. | Provision |
| D. | Reserve |
| Answer» D. Reserve | |
| 109. |
*/*_Which of the following event is subject matter of Accounting?? |
| A. | Death of key executive of the business |
| B. | Strike of workers |
| C. | Payment of Rs.1000 to bank in discharge of outstanding loan |
| D. | Marriage of the daughter of the MD of the company |
| Answer» D. Marriage of the daughter of the MD of the company | |
| 110. |
*/*_The person from whom the goods are purchased on credit are called? |
| A. | Debtors |
| B. | Creditors |
| C. | Accounts receivable |
| D. | None of the above |
| Answer» C. Accounts receivable | |
| 111. |
*/*_The main objective of providing depreciation is to? |
| A. | Calculate the true net profit |
| B. | Compute the actual cash profit |
| C. | Create funds for replacement of fixed assets |
| D. | Reduce tax burden |
| Answer» D. Reduce tax burden | |
| 112. |
*/*_Which of the following is not an item of revenue expenditure?? |
| A. | Interest on deposits accepted |
| B. | Annual insurance premium on inventory |
| C. | Customs duty paid in connection with the import of equipment |
| D. | Repairs and maintenance on machinery |
| Answer» D. Repairs and maintenance on machinery | |
| 113. |
*/*_General office expenses are charged to which of the following head?? |
| A. | Administrative expenses |
| B. | Marketing expenses |
| C. | Selling expenses |
| D. | Financial expenses |
| Answer» B. Marketing expenses | |
| 114. |
*/*_An informal accounting statement that lists the ledger account balances at a point of time and compares the total of debit balances with the total of credit balances is known as? |
| A. | Income statement |
| B. | Balance sheet |
| C. | Trial balance |
| D. | Cash Book |
| Answer» D. Cash Book | |
| 115. |
*/*_Which of the following is non-profit organization?? |
| A. | Sole proprietorship |
| B. | Partnership |
| C. | Limited company |
| D. | Trust |
| Answer» E. | |
| 116. |
*/*_Which of the following is NOT a cash inflow?? |
| A. | Sale of fixed asset |
| B. | Issue of debentures |
| C. | Cash from business operation |
| D. | Purchase of fixed asset |
| Answer» E. | |
| 117. |
*/*_Which one of the following is NOT true about revenue expenditure?? |
| A. | These are the running expenses of the business |
| B. | They improve the financial position of the business |
| C. | They reduce the profit of the concern |
| D. | They do not appear in the balance sheet |
| Answer» C. They reduce the profit of the concern | |
| 118. |
*/*_A company's merchandise, raw materials, finished and unfinished products which have not yet been sold is known as? |
| A. | Sales |
| B. | Purchases |
| C. | Inventory |
| D. | Work in progress |
| Answer» D. Work in progress | |
| 119. |
*/*_Which of the following assets are shown at written down value in Balance sheet?? |
| A. | Current assets |
| B. | Liquid asset |
| C. | Floating assets |
| D. | Fixed asset |
| Answer» E. | |
| 120. |
*/*_In an account, when credit side total < debit side total, then, the balance is known as? |
| A. | Negative balance |
| B. | Debit balance |
| C. | Positive balance |
| D. | Credit balance |
| Answer» C. Positive balance | |
| 121. |
*/*_The estimated value at which an asset is expected to be sold after the end of its useful life is called? |
| A. | Residual value |
| B. | Salvage value |
| C. | Scrap value |
| D. | All of the above |
| Answer» E. | |
| 122. |
*/*_The accrual basis of accounting records revenues when they are? |
| A. | Collected |
| B. | Earned |
| C. | Contracted |
| D. | Readily available for use |
| Answer» C. Contracted | |
| 123. |
*/*_When one or both aspects of a transaction are recorded in the wrong class or category of account, it is called? |
| A. | Error of principle |
| B. | Error of omission |
| C. | Error of commission |
| D. | Error of original entry |
| Answer» B. Error of omission | |
| 124. |
*/*_Merchandise on hand at either the beginning or end of the accounting period is called? |
| A. | Raw material |
| B. | Cost of goods sold |
| C. | Work in progress |
| D. | Inventory |
| Answer» E. | |
| 125. |
*/*_The following is a statement of revenues and expenses for a specific period of time? |
| A. | Trading account |
| B. | Trial Balance |
| C. | Profit & Loss statements |
| D. | Balance Sheet |
| Answer» D. Balance Sheet | |
| 126. |
*/*_The following is (are) the current liability (ies)? |
| A. | Bills payable |
| B. | Outstanding expenses |
| C. | Bank Overdraft |
| D. | All of the above |
| Answer» E. | |
| 127. |
*/*_Return on Investment Ratio (ROI) =? |
| A. | (Gross profit / Net sales) x 100 |
| B. | (Gross profit x Sales / Fixed assets) x 100 |
| C. | (Net profit / Sales) x 100 |
| D. | (Net profit / Total assets) x 100 |
| Answer» E. | |
| 128. |
*/*_The accounting process involves recording? |
| A. | Quantifiable economic event |
| B. | Non Quantifiable economic event |
| C. | All of them |
| D. | None of them |
| Answer» B. Non Quantifiable economic event | |
| 129. |
*/*_Real account records? |
| A. | Dealings with creditors or debtors |
| B. | Dealings in commodities |
| C. | Gains and losses |
| D. | All of the above |
| Answer» C. Gains and losses | |
| 130. |
*/*_Which of the following is the external user of financial statements?? |
| A. | Manager of the business |
| B. | CEO of the business |
| C. | Creditor of the business |
| D. | Controller of the business |
| Answer» D. Controller of the business | |
| 131. |
*/*_Liabilities are which of the following?? |
| A. | Resources |
| B. | Obligations |
| C. | Future benefits |
| D. | Expenses |
| Answer» C. Future benefits | |
| 132. |
*/*_Which of the following is a liability?? |
| A. | Cash |
| B. | Equipment |
| C. | Debtors |
| D. | Creditors |
| Answer» E. | |
| 133. |
*/*_Discount received is recorded on which of the following side of a cash book?? |
| A. | Receipts |
| B. | Payments |
| C. | Income |
| D. | Expenditure |
| Answer» C. Income | |
| 134. |
*/*_Purchase of office equipment for cash will be recorded on which side of a cash book?? |
| A. | Receipts |
| B. | Payments |
| C. | Incomes |
| D. | Expenditures |
| Answer» C. Incomes | |
| 135. |
*/*_Favourable balance of cash book implies? |
| A. | Credit balance of cash book |
| B. | Debit balance of cash book |
| C. | Bank overdraft |
| D. | Adjusted balance of cash book |
| Answer» C. Bank overdraft | |
| 136. |
*/*_Unpresented cheques are also referred to as? |
| A. | Uncollected cheques |
| B. | Uncredited cheques |
| C. | Outstanding cheques |
| D. | Bounced cheques |
| Answer» D. Bounced cheques | |
| 137. |
*/*_Revenue earned but not yet received by the business is known as? |
| A. | Contra asset revenue |
| B. | Accrued expenses |
| C. | Accrued revenue |
| D. | Unearned revenue |
| Answer» D. Unearned revenue | |
| 138. |
*/*_Sales and purchase journal doesn't record? |
| A. | Credit sales |
| B. | Credit purchases |
| C. | Credit sales and purchases |
| D. | Cash sales and purchases |
| Answer» E. | |
| 139. |
*/*_Debit note is the basis for recording a transaction in which of the following journals?? |
| A. | General journal |
| B. | Cash journal |
| C. | Purchase journal |
| D. | Purchase return journal |
| Answer» E. | |
| 140. |
*/*______ will be credited if goods are given as charity? |
| A. | Cash |
| B. | Charity |
| C. | Purchases |
| D. | Sales |
| Answer» D. Sales | |
| 141. |
*/*_Which of the following statements is incorrect regarding capital account?? |
| A. | Debit increases the capital account balance |
| B. | Credit increases the capital account balance |
| C. | Fresh capital increases the capital account balance |
| D. | Net income increases the capital account balance |
| Answer» B. Credit increases the capital account balance | |
| 142. |
*/*_Which of the following is the closing balance of a ledger account?? |
| A. | Balance c/d |
| B. | Balance b/d |
| C. | Balance e/d |
| D. | Balance f/c |
| Answer» B. Balance b/d | |
| 143. |
*/*_Which of the following account with normal balance is shown at the debit side of a trial balance?? |
| A. | Rent income account |
| B. | Creditors account |
| C. | Unearned income account |
| D. | Cash account |
| Answer» E. | |
| 144. |
*/*_A cash book with cash, bank and discount column is commonly referrred to as? |
| A. | Cash book |
| B. | Two columns cash book |
| C. | Three columns cash book |
| D. | Petty cash book |
| Answer» D. Petty cash book | |
| 145. |
%_Which of the following account with normal balance is shown at the debit side of a trial balance?_% |
| A. | Rent income account |
| B. | Creditors account |
| C. | Unearned income account |
| D. | Cash account |
| Answer» E. | |
| 146. |
%_A cash book with cash, bank and discount column is commonly referrred to as_% |
| A. | Cash book |
| B. | Two columns cash book |
| C. | Three columns cash book |
| D. | Petty cash book |
| Answer» D. Petty cash book | |
| 147. |
%_Debit note is the basis for recording a transaction in which of the following journals?_% |
| A. | General journal |
| B. | Cash journal |
| C. | Purchase journal |
| D. | Purchase return journal |
| Answer» E. | |
| 148. |
%______ will be credited if goods are given as charity_% |
| A. | Cash |
| B. | Charity |
| C. | Purchases |
| D. | Sales |
| Answer» D. Sales | |
| 149. |
%_Which of the following statements is incorrect regarding capital account?_% |
| A. | Debit increases the capital account balance |
| B. | Credit increases the capital account balance |
| C. | Fresh capital increases the capital account balance |
| D. | Net income increases the capital account balance |
| Answer» B. Credit increases the capital account balance | |
| 150. |
%_Which of the following is the closing balance of a ledger account?_% |
| A. | Balance c/d |
| B. | Balance b/d |
| C. | Balance e/d |
| D. | Balance f/c |
| Answer» B. Balance b/d | |