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-8

Bank overdraft should be categorized as

A) Current asset B) Current liability C) Fixed asset D) Fixed liability

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Answer & Solution

Answer: Option B

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According to double entry system, interest on bank loan is shown in

A) Revenue account B) Pure revenue account C) Capital account D) Cash account

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Answer: Option D

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Current Ratio is 2.7 : 1, Quick Ratio 1.8 : 1, Current Liabilities Rs. 60,000
The Value of Stock shall be

A) Rs. 54,000 B) Rs. 60,000 C) Rs. 1,08,000 D) Rs. 1,62,000

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Answer: Option A

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The balance of Short workings A/c is shown in

A) Assets side of Balance sheet B) Liabilities side of Balance sheet C) Debit side of Profit & Loss A/c D) Credit side of Profit & Loss A/c

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Answer: Option C

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Which type of shares may have dividends in arrears:

A) Ordinary shares B) Cumulative preference shares C) Non-cumulative preference shares D) Redeemable preference shares

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Answer: Option B

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When company reserves part of its capital to be called up at the time of winding up, it is known as

A) Reserve Capital B) Capital Reserve C) Uncalled Capital D) Subscribed Capital

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Answer & Solution

Answer: Option A

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A complete set of financial statements under Ind AS includes the following.
1. Balance sheet at the end of the period.
2. Statement of profit and loss for the period.
3. Statement of changes in equity for the period.
4. Statement of cash flow for the period.
5. Balance sheet at the beginning of the preceding period.
Which statements given above are correct?

A) 1, 2 and 4 B) Both 3 and 5 C) 2, 3 and 5 D) All of the above

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Answer & Solution

Answer: Option D

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Which one of the following pairs is not correctly matched:

A) Secured Mortgage Deed ⇔ Debentures B) Rights shares ⇔ Issued to new shareholders C) Convertible ⇔ Debentures D) Redeemable ⇔ Preference shares

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Answer: Option B

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Which of the following is correct about 'Margin of Safety Ratio'?

A) $$\frac{{{\text{Capital employed}}}}{{{\text{Net worth}}}}$$ B) $$\frac{{{\text{Contribution}}}}{{{\text{Sales Volume}}}}$$ C) $$\frac{{{\text{Operating Profit}}}}{{{\text{Contribution}}}}$$ D) $$\frac{{{\text{Contribution}}}}{{{\text{Sales BEP}}}}$$

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Answer: Option D

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100

Under hire-purchase system, the formula to calculate value of stock at cost equivalent is

A) Selling Price - Variable Cost B) $$\frac{{{\text{Installment Outstanding}}}}{{{\text{Selling Price}}}} \times {\text{Cash Price}}$$ C) $$\frac{{{\text{Rate of Interest}}}}{{100}}{\text{ + Rate of Interest}}$$ D) Actual Average Profit - Normal Profit

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Answer: Option B

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