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-6

In partnership, which of the following account(s) is/are opened under fixed capital account method?

A) Partner's Capital A/c B) Partner's Current A/c C) Both A and B D) None of these

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Answer & Solution

Answer: Option C

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Given:
Total Assets: Rs. 8,00,000
Current Liabilities: Rs. 2,00,000
No. of shares: Rs. 40,000
Face value per share: Rs. 10
Value per share will be:

A) Rs. 15.00 B) Rs. 10.00 C) Rs. 20.00 D) None of these

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Answer & Solution

Answer: Option A

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With reference to Provisions and Reserve, which of the following statement is/are correct?
1. Provision is a charge to profit and loss account
2. Reserve is created for a specific loss
Select the correct answer:

A) Only 1 B) Only 2 C) Both 1 and 2 D) Neither 1 nor 2

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Answer & Solution

Answer: Option A

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Which of the following factors generally contribute to the value of goodwill of a firm?

A) Quality of goods sold by the firm B) Reputation of the owners C) Risk involved in the business D) All of the above

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Answer & Solution

Answer: Option D

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Fixed cost Rs. 12,00,000 (including depreciation Rs. 80,000);
Selling price per units Rs. 1,200;
Variable cost per unit Rs. 900;
Loan Installment Rs. 2,00,000.
Cash Break Even Point will be

A) 4,367 units B) 4,400 units C) 4,000 units D) 4,933 units

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Answer & Solution

Answer: Option B

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Share warrants to bearers can be issued against:

A) Fully paid up shares in private company B) Fully paid up shares in public company C) Any shares in private or public company D) Debentures of public company

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Answer & Solution

Answer: Option B

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This is a debenture for which the company does not keeps any records and which can be transferred without any formal notice the debenture is-

A) General debenture B) Convertible debenture C) Bearer debenture D) Representative debenture

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Answer & Solution

Answer: Option C

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Which of the following is fixed asset?

A) Bank balance B) Manufactured stock of goods C) Goodwill D) Small tools

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Answer & Solution

Answer: Option C

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Assertion (A) Premium received on issue of shares is credited to share premium account, but not to profit and loss account.
Reason (R) Since, share premium is not a trading profit, it is not distributed to shareholders.

A) Both (A) and (R) are true and (R) is the correct explanation of (A) B) Both (A) and (R) are true, but (R) is not the correct explanation of (A) C) (A) is true, but (R) is false D) (A) is false, but (R) is true

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Answer & Solution

Answer: Option A

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100

Assets are shown in balance sheet in order of

A) In order of permanence B) On market price C) On Book value D) On the basis of liquidity

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Answer & Solution

Answer: Option A

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