Miscellaneous In Commerce — Part 1 MCQs with Explanations

In accounting, fixed assets and current assets are categorized as per the concept of Going concern . The going concern concept assumes that the entity will continue its operations for the foreseeable future, and assets are classified based on their nature and usage in the ongoing business activities. Therefore, the correct answer is Option B: Going concern .

The accounting equation is Assets = Liabilities + Owners' Equity . In this case: Assets = Land + Machinery + Cash = 1,500,000 + 80,000 + 20,000 = Rs. 1,600,000 Liabilities + Owners' Equity = Loan + Creditors + Owners' Equity 1,600,000 = 500,000 + Creditors + 900,000 Solving for Creditors: 1,600,000 - 500,000 - 900,000 = Creditors Creditors = 200,000 Therefore, the amount for Creditors is Rs. 200,000 .

Historical is the correct answer to “The nature of financial accounting is:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Gain for the business is the correct answer to “Interest on drawings is:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Payment of current period rent is the correct answer to “Which of these items would be accounted for as an expense”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Personal a/c is the correct answer to “Debit the receiver credit the giver rule for:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Only 1 is the correct answer to “Which of the following statements is correct in regards to tariff barrier? 1. It affects the price of imported goods. 2. It affects the quantity of imported goods. Select the correct answer:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

All of these is the correct answer to “Liabilities in balance sheet include the following items:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Accounting period concept is the correct answer to “P & L a/c is prepared for a period of one year by following:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Financial accounting, management accounting and cost accounting is the correct answer to “The word accounting can be classified into:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Transaction, source document, journal entry, ledger account, trial balance is the correct answer to “The basic sequence in the accounting process can best be described as:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Recording of financial data relating to business operation is the correct answer to “Book-keeping is mainly concerned with:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Liability side of balance sheet is the correct answer to “Credit balance of profit & loss a/c shown on:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Salaries a/c is the correct answer to “The amount of salary paid to Suresh should be debited to:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

2/3rd is the correct answer to “When the completion stage of the contract is more than half, the profit is to be credited to profit and loss account will be equal to”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Circular combination is the correct answer to “When a cement company, a steel company and a chemical company combine, it is a case of:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Actual amount paid is the correct answer to “The cost concept records the figures at:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Ensuring higher profits is the correct answer to “Which of the following is not the function of stock exchange”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Creditors is the correct answer to “All those to whom business owes money are:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Asset side of B/S is the correct answer to “Preliminary expenses are recorded in . . . . . . . .”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Ledger is the correct answer to “Transferring the debit and credit item from the journal to the respective accounts is called:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Hardware is the correct answer to “The machinery of a computer and associated equipments is called-”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Convention of conservatism is the correct answer to “Creating Provision against fluctuation in the price of investment is an example of which accounting convention:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Disclosure of all information which are important for investor is the correct answer to “Material concept tell about:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Land is the correct answer to “Which one of the following is not an example of Intangible Assets”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

All of them is the correct answer to “The concept of separate entity is applicable to which of following types of businesses”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Semi variable cost is the correct answer to “A company's telephone bill consisting of a Rs. 200 monthly base amount, plus long distance charges, would be classified as a:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Cash account is the correct answer to “Rent paid to landlord should be credited to:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Putting stamps on letters is the correct answer to “A franking machine is used for:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

a-3, b-1, c-2, d-4 is the correct answer to “Match List-I with List-II : List I List II a. Interbank call market 1. Money Market b. Commercial Bills 2. Promissory note c. Commercial papers 3. Short-term maturity d. Treasury bills 4. Government papers”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Cash a/c is the correct answer to “Which of the following account balance will be shown on debit side of Trial Balance”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Money measurement concept is the correct answer to “Accounting does not record non-financial transactions because of:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Sunk cost is the correct answer to “. . . . . . . . cost refers to those cost which have already been incurred and cannot be altered by any decision in the future.”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Real account - credit what comes in is the correct answer to “Identify which is wrong rule”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

The general ledger is posted from transactions recorded in the general journal is the correct answer to “The following comments all relate to the recording process. Which of these statements is correct”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Profit is the correct answer to “Depreciation is a charge against:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Value of plant and machinery is the correct answer to “According to the money measurement concept, the following will be recorded in the books of accounts of the business:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Appropriation of profits is the correct answer to “Retained earnings statement depicts:”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Balance Sheet is the correct answer to “Which financial statement represents the accounting equation ASSETS = LIABILITIES + OWNER'S EQUITY”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.

Materiality is the correct answer to “Showing purchased office equipments in financial statements is the application of which accounting concept”. This question is standard in competitive examination syllabi for Miscellaneous In Commerce.