Commerce MCQs | Commerce MCQs Questions & Answers

1- Business received discount from its:

A). Debtors

B). Creditors✔️

C). Investors

D). Partners

2- The provision for bad debts is made by crediting:

A). Profit and Loss Account

B). Debtors Account

C). Creditors Account

D). Provision for bad debts Account✔️

3- The provision for discount on creditors is often not provided in keeping with the principle of:

A). Materiality

B). Consistency

C). Conservatism✔️

D). Realization

4- One way of avoiding errors in the permanent Accounting records, is to use a form, called:

A). Bank statement

B). Work sheet✔️

C). Balance sheet

D). Journal form

5- A working paper of accountants, prepared by lead pencil is:

A). Work sheet✔️

B). Balance sheet

C). Income Statement

D). General journal

6- Which one of the following is not consider the permanent part of the accounting record:

A). Journal

B). Trial Balance

C). Balance sheet

D). Work sheet✔️

7-  A working paper which is prepared by the accountant for his own convenience is called:

A). Work sheet

B). Cash flows statement

C). Balance sheet✔️

D). Final accounts

8- The amount invested by the person in the business to produce revenue is said to be:

A). Capital✔️

B). Revenue

C). Assets

D). Expense

9- The price of goods sold or services rendered by a business to its customers is known as:

A). Capital

B). Revenue✔️

C). Assets

D). Expense

10- Transaction having long term effect are known as:

A). Revenue transactions

B). Revenue expenditures

C). Capital expenditures

D). Capital transactions✔️

11- Transaction having short term effect are known as:

A). Revenue

B). Capital

C). Revenue transaction✔️

D). Capital transactions

12- Any expenditure that benefits the business for several accounting years is regarded us a:

A). Capital expenditure✔️

B). Revenue expenditure

C). Deferred expenditure

D). Current expenditure

13- Any expenditure that benefits the business only for one accounting year is considered a:

A). Capital expenditure

B). Revenue expenditure✔️

C). Future expenditure

D). Capital expenditure

14- Any expenditure which is not incurred repeatedly and regularly is a:

A). Revenue expenditure

B). Short term expenditure

C). Capital expenditure✔️

D). Current expenditure

15- Any expenditure which is incurred again and again is a:

A). Capital expenditure

B). Future expenditure

C). Deterred expenditure

D). Revenue expenditure✔️

16- Any expenditure incurred to the increase the profit earning capacity of the concern is a:

A). Revenue expenditure

B). Current expenditure

C). Capital receipt

D). Capital expenditure✔️

17-Any expenditure incurred to keep the activities of a concern going is:

A). Capital expenditure

B). Revenue receipt

C). Revenue expenditure✔️

D). Future expenditure

18- Expenditure incurred after buying second hand asset to bring it into proper working place is a:

A). Capital expenditure✔️

B). Revenue expenditure

C). Deferred expenditure

D). Capital loss

19- Expenditure incurred on the purchase and installation of a new asset is regarded as:

A). Revenue expenditure

B). Capital expenditure✔️

C). Revenue receipt

D). Revenue loss

20- If the goods or a service lost less than one year it is:

A). Revenue expenditure✔️

B). Capital expenditure

C). Revenue receipt

D). Capital receipt

21- If the goods or a service lost longer than one year, it is:

A). Revenue expenditure

B). Capital expenditure✔️

C). Revenue receipt

D). Capital receipt

22- Revenue expenditure the impact of which is likely to last for more than one year is:

A). Capital expenditure

B). Revenue expenditure

C). Deferred revenue expenditure✔️

D). None of these

23- Expenditure to maintain the asset is:

A). Capital expenditure

B). Revenue expenditure✔️

C). Future expenditure

D). Deferred revenue expenditure

24- Expenditure to improve the asset is:

A). Deferred revenue expenditure

B). Revenue expenditure

C). Current expenditure

D). Capital expenditure✔️

25- The expenditure reduce revenue (profit) of the business, are:

A). Revenue expenditure✔️

B). Capital expenditure

C). Fixed expenditure

D). Future expenditure

Useful Links:-

Lecturer Commerce Online Tests

One Paper MCQs

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