Commerce & Accountancy

My Learning Cart

Commerce & Accountancy

Download Q&A

Commerce & Accountancy MCQ & Objective Questions

Commerce & Accountancy is a vital subject for students aiming to excel in their school exams and competitive assessments. Mastering this field not only enhances your understanding of financial principles but also significantly boosts your exam scores. Practicing MCQs and objective questions is essential, as it helps you identify important questions and reinforces your exam preparation through targeted practice questions.

What You Will Practise Here

Fundamental concepts of accounting and financial statements
Key principles of commerce including trade, marketing, and economics
Important formulas related to profit and loss, balance sheets, and cash flow
Definitions of key terms such as assets, liabilities, and equity
Diagrams illustrating accounting processes and business models
Theory areas covering the role of commerce in the economy
Analysis of case studies relevant to real-world commerce scenarios

Exam Relevance

Commerce & Accountancy is a significant part of the curriculum for CBSE, State Boards, and various competitive exams like NEET and JEE. Questions often focus on practical applications of concepts, requiring students to solve numerical problems and interpret financial data. Common question patterns include multiple-choice questions that test both theoretical knowledge and practical understanding, making it crucial to be well-prepared.

Common Mistakes Students Make

Misunderstanding the difference between assets and liabilities
Confusing terms related to accounting principles
Overlooking the importance of accurate calculations in numerical questions
Neglecting to review the impact of transactions on financial statements

FAQs

Question: What are the key topics I should focus on in Commerce & Accountancy?
Answer: Focus on financial statements, accounting principles, and key formulas to excel in this subject.

Question: How can I improve my performance in Commerce & Accountancy exams?
Answer: Regular practice of MCQs and understanding the concepts thoroughly will enhance your performance.

Start solving practice MCQs today to test your understanding and boost your confidence in Commerce & Accountancy. Remember, consistent practice is the key to success in your exams!

Business Studies Cost & Management Accounting Financial Accounting Taxation Basics

Q. What is the purpose of market research?

A. To increase production
B. To understand consumer needs
C. To reduce costs
D. To improve employee morale

Solution

Market research aims to understand consumer needs and preferences.

Correct Answer: B — To understand consumer needs

Q. What is the purpose of market segmentation?

A. To increase production costs
B. To identify different customer needs
C. To standardize products
D. To reduce marketing efforts

Solution

Market segmentation is used to identify different customer needs and tailor marketing strategies accordingly.

Correct Answer: B — To identify different customer needs

Q. What is the purpose of preparing a final account for a partnership?

A. To determine the net income or loss
B. To calculate the partners' capital balances
C. To distribute profits among partners
D. All of the above

Solution

The final account serves multiple purposes including determining net income, calculating capital balances, and profit distribution.

Correct Answer: D — All of the above

Q. What is the purpose of preparing a final account in a partnership?

A. To determine the profit or loss
B. To assess the financial position
C. To distribute profits among partners
D. All of the above

Solution

The final account is prepared to determine the profit or loss, assess the financial position, and distribute profits among partners.

Correct Answer: D — All of the above

Q. What is the purpose of preparing a profit and loss appropriation account in a partnership?

A. To calculate net profit
B. To distribute profits among partners
C. To record all expenses
D. To prepare the balance sheet

Solution

The profit and loss appropriation account is prepared to distribute the net profit among the partners according to their profit-sharing ratio.

Correct Answer: B — To distribute profits among partners

Q. What is the purpose of preparing a trial balance in partnership accounting?

A. To determine the profit or loss
B. To ensure that debits equal credits
C. To prepare financial statements
D. To assess the liquidity position

Solution

The primary purpose of preparing a trial balance is to ensure that the total debits equal the total credits, confirming the accuracy of the ledger accounts.

Correct Answer: B — To ensure that debits equal credits

Q. What is the purpose of preparing a trial balance?

A. To determine the net income
B. To ensure that debits equal credits
C. To prepare the cash flow statement
D. To calculate the tax liability

Solution

The primary purpose of preparing a trial balance is to ensure that total debits equal total credits.

Correct Answer: B — To ensure that debits equal credits

Q. What is the purpose of preparing final accounts for a partnership?

A. To determine the net income or loss
B. To assess the financial position
C. To distribute profits among partners
D. All of the above

Solution

Final accounts serve multiple purposes including determining net income, assessing financial position, and profit distribution.

Correct Answer: D — All of the above

Q. What is the purpose of preparing final accounts for a sole trader?

A. To calculate tax liabilities
B. To assess the financial position and performance
C. To prepare for audits
D. To determine inventory levels

Solution

Final accounts are prepared to assess the financial position and performance of the sole trader over a specific period.

Correct Answer: B — To assess the financial position and performance

Q. What is the purpose of preparing final accounts?

A. To determine the financial position of a business
B. To calculate tax liabilities
C. To assess employee performance
D. To prepare for audits

Solution

Final accounts are prepared to provide a clear picture of the financial position of a business.

Correct Answer: A — To determine the financial position of a business

Q. What is the purpose of SWOT analysis in management?

A. To evaluate financial performance
B. To assess market trends
C. To identify strengths, weaknesses, opportunities, and threats
D. To develop employee skills

Solution

SWOT analysis is used to identify strengths, weaknesses, opportunities, and threats related to a business or project, aiding in strategic planning.

Correct Answer: C — To identify strengths, weaknesses, opportunities, and threats

Q. What is the purpose of the balance sheet in the final accounts?

A. To show cash inflows and outflows
B. To summarize income and expenses
C. To present the financial position at a specific date
D. To calculate net profit

Solution

The balance sheet presents the financial position of the sole trader at a specific date, showing assets, liabilities, and equity.

Correct Answer: C — To present the financial position at a specific date

Q. What is the purpose of the final accounts?

A. To record daily transactions
B. To summarize the financial position and performance of a business
C. To prepare tax returns
D. To manage cash flow

Solution

Final accounts summarize the financial position and performance of a business at the end of an accounting period.

Correct Answer: B — To summarize the financial position and performance of a business

Q. What is the purpose of the trial balance in the context of final accounts?

A. To summarize all income and expenses
B. To ensure that debits equal credits
C. To calculate the net profit
D. To prepare the balance sheet

Solution

The trial balance is used to ensure that debits equal credits before preparing final accounts.

Correct Answer: B — To ensure that debits equal credits

Q. What is the rate of GST applicable on most goods and services in India?

A. 5%
B. 12%
C. 18%
D. 28%

Solution

The standard rate of GST applicable on most goods and services in India is 18%.

Correct Answer: C — 18%

Q. What is the rate of GST applicable on the supply of goods and services in India?

A. 5%
B. 12%
C. 18%
D. 28%

Solution

The standard rate of GST applicable on the supply of goods and services in India is 18%.

Correct Answer: C — 18%

Q. What is the rate of GST applicable on the supply of most goods and services in India?

A. 5%
B. 12%
C. 18%
D. 28%

Solution

The rate of GST applicable on the supply of most goods and services in India is 18%.

Correct Answer: C — 18%

Q. What is the rate of GST on most goods and services in India?

A. 5%
B. 12%
C. 18%
D. 28%

Solution

The standard rate of GST on most goods and services in India is 18%.

Correct Answer: C — 18%

Q. What is the rate of GST on most goods and services?

A. 5%
B. 12%
C. 18%
D. 28%

Solution

The standard rate of GST on most goods and services is 18%.

Correct Answer: C — 18%

Q. What is the rate of GST on most goods?

A. 5%
B. 12%
C. 18%
D. 28%

Solution

The rate of GST on most goods is 18%, although there are different rates for various categories.

Correct Answer: C — 18%

Q. What is the rate of GST on the supply of goods and services under the standard rate?

A. 5%
B. 12%
C. 18%
D. 28%

Solution

The standard rate of GST on the supply of goods and services is 18%.

Correct Answer: C — 18%

Q. What is the relationship between the trial balance and the final accounts?

A. The trial balance is prepared after the final accounts
B. The trial balance is a summary of the final accounts
C. The trial balance is used to prepare the final accounts
D. There is no relationship

Solution

The trial balance is used to prepare the final accounts, as it summarizes all the account balances that will be reported in the financial statements.

Correct Answer: C — The trial balance is used to prepare the final accounts

Q. What is the residential status of an individual who has stayed in India for 120 days in the current financial year and 365 days in the preceding four years?

A. Resident
B. Non-Resident
C. Resident but Not Ordinarily Resident
D. Ordinarily Resident

Solution

The individual is considered a Resident as they meet the basic condition of staying for 60 days in the current year and 365 days in the preceding four years.

Correct Answer: A — Resident

Q. What is the residential status of an individual who has stayed in India for 120 days during the current financial year and 365 days in the preceding four years?

A. Resident and Ordinarily Resident
B. Non-Resident
C. Resident but Not Ordinarily Resident
D. Not Applicable

Solution

The individual is classified as Resident and Ordinarily Resident based on the given criteria.

Correct Answer: A — Resident and Ordinarily Resident

Q. What is the residential status of an individual who has stayed in India for 182 days in the current financial year?

A. Non-resident
B. Resident but not ordinarily resident
C. Ordinarily resident
D. Partially resident

Solution

An individual who stays in India for 182 days or more is considered a resident.

Correct Answer: C — Ordinarily resident

Q. What is the residential status of an individual who has stayed in India for 182 days during the current financial year?

A. Resident
B. Non-resident
C. Not ordinarily resident
D. Ordinarily resident

Solution

An individual who has stayed in India for 182 days during the current financial year is classified as a Resident.

Correct Answer: A — Resident

Q. What is the residential status of an individual who has stayed in India for 182 days or more during the current financial year?

A. Resident
B. Non-resident
C. Not ordinarily resident
D. Ordinarily resident

Solution

An individual who has stayed in India for 182 days or more during the current financial year is considered a Resident.

Correct Answer: A — Resident

Q. What is the residential status of an individual who has stayed in India for 182 days or more during the financial year?

A. Non-resident
B. Resident but not ordinarily resident
C. Ordinarily resident
D. Not applicable

Solution

An individual who has stayed in India for 182 days or more during the financial year is considered a resident.

Correct Answer: C — Ordinarily resident

Q. What is the role of a 'brand ambassador'?

A. To manage the company's finances
B. To promote and represent the brand
C. To develop new marketing strategies
D. To conduct market research

Solution

A brand ambassador promotes and represents the brand, often enhancing its image and reach in the market.

Correct Answer: B — To promote and represent the brand

Q. What is the role of a business environment in strategic management?

A. To eliminate competition
B. To provide a framework for decision-making
C. To dictate operational processes
D. To ensure compliance with laws

Solution

The business environment provides a framework for decision-making in strategic management by influencing opportunities and threats.

Correct Answer: B — To provide a framework for decision-making

Showing 1021 to 1050 of 1639 (55 Pages)

School

College

Degree

Competitve

Skills

Soulshift Feedback ×

On a scale of 0–10, how likely are you to recommend The Soulshift Academy?

Not likely Very likely