Accounting MCQ Questions and Solutions with Explanations

Accounting MCQ Questions and Solutions with Explanations | Commerce

Accounting MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Accounting MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-10 section-10

Which of the following defines outstanding salary account?

A) Natural personal account B) Artificial personal account C) Representative personal account D) Real account

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Answer & Solution

Answer: Option C

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Which one of the following statements is wrong?

A) Only fully-paid Preference Shares can be redeemed by a company B) Premium payable on Redemption of preference Shares can be privided for out of company's share premium account C) Partly-paid Bonus Shares cannot be issued out of capital redemption reserve fund D) Redeemable Preference Shares can be redeemed only out of profits of the company

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Answer & Solution

Answer: Option D

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The Purpose of providing depreciation is:

A) to reduce the book value of fixed assets to the level of their market value each year B) to save income tax and wealth tax C) to reduce fixed assets to nil value as soon as possible D) to allocate the cost of fixed assets over their working life

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Answer & Solution

Answer: Option D

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Ram has 50 shares of Rs. 100 each on which Rs. 80 per share have been received. Due to non payment of final call these shares were forfeited so in this case share forfeiture account will be cridited by

A) Rs. 5,000 B) Rs. 4,000 C) Rs. 2,000 D) None of the above

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Answer & Solution

Answer: Option B

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Goodwill arising on amalgamation is to be

A) retained in the books of the transferee company B) amortised to income on a systematic basis normally five years C) adjusted against reserves or profit and loss account balance D) all of the above

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Answer & Solution

Answer: Option B

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In order to raise finance, which of the following securities can be issued by a company?
1. Equity Shares
2. Redeemable Equity Shares
3. Redeemable Debentures
4. Redeemable Preference Shares
5. Bonus Shares
Select the correct answer:

A) 1, 2 and 3 B) 1, 3 and 4 C) 1, 2 and 4 D) 2, 4 and 5

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Answer & Solution

Answer: Option B

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Which of the following has the highest price?

A) Cash B) Hire-Purchase system C) Interest D) Depreciation

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Answer & Solution

Answer: Option B

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Share warrant can be issued by a company when

A) application money has been paid on shares B) shares are partly paid C) shares are fully paid D) shares are lost

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Answer & Solution

Answer: Option C

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In case net sale in a year is Rs. 2,00,000 and the amount of debtors is Rs. 40,000, the average collection period will be:

A) 60 days B) 45 days C) 73 days D) 75 days

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Answer & Solution

Answer: Option C

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100

A company can buy back

A) partly paid share B) fully paid share C) partly called up D) none of these

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Answer & Solution

Answer: Option B

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