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-13

If an entity owns directly or indirectly more than 50% of voting rights, control is presumed unless clearly proven that it is not control. Sometimes control exists, even if there is less than 50% of voting rightes exist. State which of the followings is/are example(s) of control even if voting power is less than 50%

A) Power to govern financial and operating policies under statute B) Power to remove/appoint majority members of BOD that controls the entity C) Power to cost majority of votes at meetings of BOD that controls the entity D) All of the above

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Answer: Option D

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By which of the following the working capital will not change?

A) Cash purchase of goods B) Cash purchase of machine C) Purchase of machine by cheque D) Sale of old machine by cheque

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Answer: Option A

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Which of the following is transferable merely by delivery:

A) an equity share B) a preference share C) a share warrant D) a debenture

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Answer: Option C

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In case of a retirement of a partner total amount of goodwill is credited to:

A) Only retiring partner capital account B) Only remaining partner capital account C) All partner capital account D) None of the above

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Answer: Option C

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Mr. Smith applied for 200 shares at Rs. 10 per share, but 160 shares were alloted to him. After paying Rs. 2 per share on application he did not pay the allotment money of Rs. 2 per share and first call money of Rs. 3 per share. What is the outstanding amount on the shares alloted to Mr. Smith?

A) Rs. 800 B) Rs. 1,280 C) Rs. 320 D) Rs. 720

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Answer: Option D

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The originator of the double entry system, Lucas Pacioli was resident of

A) America B) Italy C) India D) Japan

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Answer: Option B

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Capital account comes under which concept?

A) Separate entity concept B) Accounting period concept C) Accrual concept D) Realisation concept

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Answer: Option A

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A limited company forfeited 100 share (fully called-up) for non-payment of Rs. 4 per share. Out of these 50 share were re-issued at Rs. 8 per share. What will be amount transferred to capital reserve

A) Rs. 800 B) Rs. 200 C) Rs. 250 D) Rs. 100

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Answer: Option B

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Best indicator of the overall efficiency of a business concern is:

A) Profitability ratio B) Debt equity ratio C) Acid test ratio D) Current ratio

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Answer: Option A

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100

The credit balance in the Income and Expenditure A/c indicates:

A) the excess of cash receipts over cash payments B) the excess of income over expenditure C) the excess of expenditure over income D) the excess of cash payments over cash receipts

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Answer: Option B

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