Accounting

Master the fundamentals of Accounting with our extensive collection of Accounting MCQs with answers and detailed explanations. Covering topics like financial accounting, cost accounting, auditing, partnership accounts, corporate accounting, and managerial accounting, these multiple-choice questions are ideal for students, teachers, and candidates preparing for competitive exams (CA, ACCA, ICMA, CSS, PMS, NTS, FPSC, PPSC, UPSC, etc.). Each question is followed by a clear solution and explanation to strengthen your concepts, improve problem-solving skills, and boost exam preparation. Perfect for practice, self-assessment, and revision in Accounting.

221. Commercial accounting is based on

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Single entry book keeping
Double entry book keeping
Both single and double entry book keeping
Cash basis of book keeping
✅ The correct answer is B.
Commercial accounting is based on Double entry book keeping. Commercial accounting is something about providing right informatin to right people on right time. In commercial accounting, the system is maintained by the business organizations. The main objective of commercial accounting is to know the profit or loss and the financial position of any business.

223. Right shares are the shares

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Issued by a newly formed company
Legally issued to the public at large
Offered to the existing equity shareholders
That have a right of redemption
✅ The correct answer is C.
Right shares are the shares Offered to the existing equity shareholders. A rights offering (rights issue) is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings.

225. Documentary evidence, in a specific format used to record the details of a transaction is known as

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Account
Voucher
Journal
Ledger
✅ The correct answer is B.
Documentary evidence, in a specific format used to record the details of a transaction is known as Voucher. Voucher is documentary evidence in a specific format that records the details of a transaction. It is accompanied by the evidence of transaction.

227. The following error will affect the Trial Balance

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Error of partial omission
Error of principle
Error of complete omission
All of the above
✅ The correct answer is A.
Error of partial omission will affect the Trial Balance. This error occurs when a transaction that should have been posted as a debit is posted as credit, for example, in a cash sale, sales are debited and cash is credited.

229. Transferring entries from journal to ledger account is commonly known as

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Recording
Transferring
Posting
Entry making
✅ The correct answer is C.
Transferring entries from journal to ledger account is commonly known as Posting. Posting refers to the process of transferring entries in the journal into the accounts in the ledger. Posting to the ledger is the classifying phase of accounting.