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.
| 1. |
Bank pass book is also known as~! |
| A. | Bank book |
| B. | Bank account |
| C. | Bank column |
| D. | Bank statement |
| Answer» E. | |
| 2. |
In case of debit balance, the words _____ are written on the debit side~! |
| A. | To Balance b/d |
| B. | To Balance c/d |
| C. | By Balance c/d |
| D. | By Balance b/d |
| Answer» B. To Balance c/d | |
| 3. |
An alternative term used for accumulated depreciation expenses?%! |
| A. | Provision for depreciation |
| B. | Cumulative depreciation |
| C. | Targeted depreciation |
| D. | Depletion |
| Answer» B. Cumulative depreciation | |
| 4. |
The purchase price of a software that will be used for more than 12 months should be regarded as%! |
| A. | a revenue expenditure |
| B. | a capital expenditure |
| C. | a long term expense |
| D. | an accounting period expense |
| Answer» C. a long term expense | |
| 5. |
Which of the following is a double entry for deprecation expenses?%! |
| A. | Accumulated depreciation Debit and depreciation expenses Credit |
| B. | Depreciation expenses Debit and accumulated depreciation Credit |
| C. | Cash Debit and Depreciation expenses Credit |
| D. | Depreciation expenses Debit and Cash Credit |
| Answer» C. Cash Debit and Depreciation expenses Credit | |
| 6. |
Cost of a fixed asset - Accumulated depreciation expenses of the fixed asset = ?%! |
| A. | Book value of a fixed asset |
| B. | Market value of a fixed asset |
| C. | Historical cost of a fixed asset |
| D. | Recoverable amount if a fixed asset |
| Answer» B. Market value of a fixed asset | |
| 7. |
How trial balance shows the accumulated depreciation?%! |
| A. | as a debit item |
| B. | as a credit item |
| C. | It doesn't show |
| Answer» C. It doesn't show | |
| 8. |
Depreciable amount + Residual value of a fixed asset = ?%! |
| A. | Depreciation expenses |
| B. | Accumulated depreciation |
| C. | Cost of the fixed asset |
| D. | Future economic benefits of a fixed asset |
| Answer» D. Future economic benefits of a fixed asset | |
| 9. |
Which of the following is the normal balance of an accumulated depreciation account?%! |
| A. | Debit balance |
| B. | Credit balance |
| C. | Nil balance |
| Answer» C. Nil balance | |
| 10. |
In depreciation calculation, the useful life of a fixed asset is:%! |
| A. | a certain figure |
| B. | an estimate |
| C. | a predetermined figure for all fixed assets |
| Answer» C. a predetermined figure for all fixed assets | |
| 11. |
A company purchased a vehicle for Rs.6000. It will be used for 5 years and its residual value is expected to be Rs.1000. What is the annual amount of depreciation using straight line method of depreciation?%! |
| A. | Rs. 1000 |
| B. | Rs. 2000 |
| C. | Rs. 3000 |
| D. | Rs. 5000 |
| Answer» B. Rs. 2000 | |
| 12. |
Which of the following is/are kind of depreciation expenses?%! |
| A. | Amortization |
| B. | Depletion |
| C. | Both of them |
| Answer» D. | |
| 13. |
Debit balance = Credit balance in a trial balance indicates that%! |
| A. | No error in recording transactions |
| B. | No error in posting entries to ledger accounts |
| C. | Account balances are correct |
| D. | Mathematically Capital + Liabilities = Assets |
| Answer» E. | |
| 14. |
Cost of goods available for sale - closing inventory = ?%! |
| A. | Opening inventiry |
| B. | Cost of opening finished goods inventory |
| C. | Work in progress ending inventory |
| D. | Cost of goods sold |
| Answer» E. | |
| 15. |
In which of the following condition, a company will have positive working capital?%! |
| A. | If current assets>current liabilities |
| B. | If current assets |
| C. | If current assets = current liabilities |
| Answer» B. If current assets | |
| 16. |
Which of the following is true about a trial balance?%! |
| A. | It lists down the balances of accounts |
| B. | It lists down the balances of a balance sheet |
| C. | It is a kind of financial statement |
| D. | It is not a part of accounting cycle |
| Answer» B. It lists down the balances of a balance sheet | |
| 17. |
Opening inventory + Net purchases = ?%! |
| A. | Ending inventory |
| B. | Closing stock |
| C. | Cost of goods manufactured |
| D. | Cost of goods available for sale |
| Answer» E. | |
| 18. |
Which of the following account will be credited in the books of XYZ Co. Ltd, if the business purchases a vehicle thriugh cheque?%! |
| A. | Vehicle account |
| B. | Business account |
| C. | Bank account |
| D. | Debtors account |
| Answer» D. Debtors account | |
| 19. |
_______ is the common base for preparing a trial balance%! |
| A. | Ledger accounts |
| B. | General Journal |
| C. | Specialized journals |
| D. | Balance sheet |
| Answer» B. General Journal | |
| 20. |
Which one of the following inventory costing methods is supposed to issue the most recently purchased goods?%! |
| A. | FIFO |
| B. | LIFO |
| C. | AVCO or averrage cost |
| D. | Moving average |
| Answer» C. AVCO or averrage cost | |
| 21. |
Accounts receivable & inventory are the examples of%! |
| A. | Current assets |
| B. | Liquid asset |
| C. | Fixed asset |
| D. | Capital asset |
| Answer» B. Liquid asset | |
| 22. |
If a transaction is completely omitted from the books of accounts, will it effect the agreement of Trial Balance?%! |
| A. | Yes |
| B. | No |
| C. | Transactions can |
| Answer» C. Transactions can | |
| 23. |
Which one of the following methods of inventory costing produces ending stock cost close to the market value of the inventory?%! |
| A. | FIFO |
| B. | LIFO |
| C. | AVCO or averrage cost |
| Answer» B. LIFO | |
| 24. |
Which of the following capital is required for the registration of the company?%! |
| A. | Issued capital |
| B. | Subscribed capital |
| C. | Authorized capital |
| D. | Reserve capital |
| Answer» D. Reserve capital | |
| 25. |
The real accounts are accounts of Assets, Liabilities and%! |
| A. | Expenses |
| B. | Revenues |
| C. | Capital |
| D. | Drawing |
| Answer» D. Drawing | |
| 26. |
Which one of the following methods of inventory costing yields highest taxable income?%! |
| A. | FIFO |
| B. | LIFO |
| C. | AVCO or averrage cost |
| D. | Standard cost method |
| Answer» B. LIFO | |
| 27. |
Which of the following is quoted company?%! |
| A. | Private limited company |
| B. | Public limited company |
| C. | Listed company |
| D. | Non listed company |
| Answer» D. Non listed company | |
| 28. |
Drawings by owner of business are generally recorded on which of the following side of a cash book?%! |
| A. | Receipts |
| B. | Payments |
| C. | Incomes |
| D. | Expenditures |
| Answer» C. Incomes | |
| 29. |
Postdated cheques are considered as%! |
| A. | Cash |
| B. | Bank balance |
| C. | Accounts receivable |
| D. | Cash reserve |
| Answer» D. Cash reserve | |
| 30. |
A cash deposit made by business appears on the bank statement as ____ balance%! |
| A. | Debit |
| B. | Credit |
| C. | Expenses |
| D. | Liability |
| Answer» C. Expenses | |
| 31. |
_______ are cheques that are issued by the business but not yet presented to bank for payment%! |
| A. | Uncollected cheques |
| B. | Uncredited cheques |
| C. | Outstanding cheques |
| D. | Bounced cheques |
| Answer» D. Bounced cheques | |
| 32. |
Which of the following is not regarded as the fundamental concept that is identified by IAS-1?%! |
| A. | The going concern concept |
| B. | The separate entity concept |
| C. | The prudence concept |
| D. | Correction concept |
| Answer» E. | |
| 33. |
The debts which are to be repaid within a short period (year or less) are known as%! |
| A. | Current liabilities |
| B. | Fixed liabilities |
| C. | Contingent liabilities |
| D. | All of the above |
| Answer» B. Fixed liabilities | |
| 34. |
Which of the following specialized journal records "goods returned by customers"?%! |
| A. | Purchase journal |
| B. | Sales journal |
| C. | Purchase return journal |
| D. | Sales return journal |
| Answer» E. | |
| 35. |
The matching concept matches which of the following?%! |
| A. | Asset with liabilities |
| B. | Capital with income |
| C. | Revenues with expenses |
| D. | Expenses with capital |
| Answer» D. Expenses with capital | |
| 36. |
Which of the following account will be credited, if business bought goods on credit from Mr. Z?%! |
| A. | Purchases account |
| B. | Mr. Z account |
| C. | Cash account |
| D. | Sales account |
| Answer» C. Cash account | |
| 37. |
Which of the following is not considered as Research & Development costs?%! |
| A. | Testing in search for product alternatives |
| B. | Legal work on patent application |
| C. | Modification of design of a process |
| D. | Searching for application of new research findings |
| Answer» C. Modification of design of a process | |
| 38. |
Rs.5000 spent on maintenance of computer is%! |
| A. | Deferred capital expenditure |
| B. | Capital expenditure |
| C. | Revenue expenditure |
| D. | None of the above |
| Answer» D. None of the above | |
| 39. |
In accounting, an economic event is referred to as%! |
| A. | Cash |
| B. | Bank statement |
| C. | Transaction |
| D. | Exchange of money |
| Answer» D. Exchange of money | |
| 40. |
A low Return on Investment Ratio (ROI) indicates%! |
| A. | Improper utilization of resources |
| B. | Over investment in assets |
| C. | Both A and B |
| D. | None of the above |
| Answer» D. None of the above | |
| 41. |
_______ is the gross inflow of economic benefits%! |
| A. | Assets |
| B. | Liabilities |
| C. | Income |
| D. | Expenses |
| Answer» D. Expenses | |
| 42. |
General Journal is a book of _____ entries%! |
| A. | First |
| B. | Original |
| C. | Secondary |
| D. | Generic |
| Answer» C. Secondary | |
| 43. |
The Journal entry in which two or more account is debited or credited is referred to as%! |
| A. | Journal entry |
| B. | Multi entry |
| C. | Additional entry |
| D. | Compound entry |
| Answer» E. | |
| 44. |
Journals are also referred to as%! |
| A. | Book of entries |
| B. | Book of original entries |
| C. | T account |
| D. | Book of economic events |
| Answer» C. T account | |
| 45. |
Identify the nominal account%! |
| A. | Machinery account |
| B. | Building account |
| C. | Creditors account |
| D. | Rent expenses account |
| Answer» E. | |
| 46. |
Payment of expenses will ______ the assets%! |
| A. | Increase |
| B. | Reduce |
| C. | Apportion |
| D. | Overstate |
| Answer» C. Apportion | |
| 47. |
In Journal, the business transaction is recorded%! |
| A. | Same day |
| B. | Next day |
| C. | Once in a week |
| D. | Once in a month |
| Answer» B. Next day | |
| 48. |
Current ratio =%! |
| A. | Quick assets/Current liabilities |
| B. | Current assets/Current liabilities |
| C. | Debt/Equity |
| D. | Current assets/Equity |
| Answer» C. Debt/Equity | |
| 49. |
Balance sheet is a statement of%! |
| A. | Assets |
| B. | Liabilities |
| C. | Capital |
| D. | All of the above |
| Answer» E. | |
| 50. |
What is equity?%! |
| A. | Cash from the business |
| B. | Liability of a business |
| C. | Owner's claim on total assets |
| D. | Owner's claim on total liabilities |
| Answer» D. Owner's claim on total liabilities | |