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-21

If sales are Rs. 18,000 gross profit Rs. 5,000 net loss Rs. 1,000, then the amount of operating expenses will be

A) Rs. 4,000 B) Rs. 6,000 C) Rs. 13,000 D) Rs. 17,000

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Answer & Solution

Answer: Option B

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Stock turnover ratio refers to the ratio of the average amount of stock available in the museum with

A) Quantity of material used in a given period B) Quantity of material purchased in a given period C) Quantity of material produced in a given period D) None of the above

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Answer: Option D

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The cash inflow per annum will be-

A) Accounting profit-tax B) Accounting profit-tax depreciation C) Only accounting profit D) None of the above

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Answer: Option B

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Only personal and real accounts are shown in:

A) Trial balance B) Balance sheet C) Profit and loss A/c D) Trading A/c

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Answer: Option B

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Match the following:

List-I	List-II
a. Revaluation account is prepared at the time of	1. may or may not be surrendered at the time of retirement of a partner
b. Joint Life Policy	2. to settle the claim of the outgoing partner
c. Premium on Joint Life Policy taken up on the lives of all partners is paid by	3. admission of a partner
d. The objective of taking Joint Life Policy by a partnership firm is	4. partnership firm

A) a-4, b-3, c-2, d-1 B) a-3, b-1, c-4, d-2 C) a-2, b-1, c-4, d-3 D) a-2, b-4, c-1, d-3

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Answer: Option B

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With the help of following information, find out the value of fixed assets-
Share capital = Rs. 7,20,000
Working capital = Rs. 2,52,000
Current Ratio = 2.5
Proprietary Ratio = 0.7

A) Rs. 5,04,000 B) Rs. 5,40,000 C) Rs. 3,60,000 D) Rs. 5,88,000

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Answer: Option D

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Cash flow statement is not helpful in:

A) Planning the repayment of loans and replacement of fixed assets B) Projecting the profits of the business in the long run C) Detecting the causes of poor cash position inspite of substantial profits D) Evaluation of cash position of a firm

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Answer: Option B

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A, B and C who are partners had a credit balance of Rs. 5,000, Rs. 10,000 and Rs. 20,000 respectively in their capital accounts when the firm was dissolved and the assets disposed off piecemeal. If in the first instalment the realisation is Rs. 10,000 and the Garner Vs. Murray rule is applicable, the distribution among the partners will be:

A) Rs. 3,333, Rs. 3,333, Rs. 3,334 B) Rs. 1,667, Rs. 3,333, Rs. 5,000 C) Rs. 1,429, Rs. 2,857, Rs. 5,714 D) Rs. 1,500, Rs. 3,000, Rs. 5,500

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Answer: Option A

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The loss arising from the acquisition of business to its incorporation should be debited to:

A) Profit and loss account B) Capital reserve account C) Goodwill account D) Profit and loss adjustment account

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Answer: Option C

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100

According to Companies Act, 2013 shares can be issued by a company at

A) Par B) Discount C) Par or Premium D) Premium

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Answer: Option C

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