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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-2 section-6

Each section contains 100 MCQs on Accounting .
11
Revenue is generally recognised as being earned at the point of time, when:
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Answer & Solution
Answer: Option A
No explanation is given for this question. Let's Discuss on Board
12
The cost of a machine having a span of life 5 years is Rs. 10,000. It has a scrap value of Rs. 1,000. The amount of depreciation in the first year under the sum of year's digit method will be:
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Answer & Solution
Answer: Option D
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13
Depreciation on fixed assets is:
OR
Depreciation is:
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Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
14
. . . . . . . . rule is applicable at the time of any partner becoming insolvent.
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Answer & Solution
Answer: Option A
No explanation is given for this question. Let's Discuss on Board
15
X and Y are partners in a firm. X is entitled to a salary of Rs. 2,000 per month together with a commission of 10% of net profit before chargin any commission. Y is entitled to a salary of Rs. 5000 per annum together with a commission of 10% of net profit after charging all commissions. Net profit before charging any commission for the year was Rs. 55,000. What will be the net profits to be distributed to X and Y respectively?
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Answer & Solution
Answer: Option E
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16
The quick ratio is 1.5 : 1 and the quick assets is Rs. 30,000. The quick liability will be
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Answer & Solution
Answer: Option A
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17
Current Cost Accounting method attempted to match the current incomeagainst which cost?
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Answer & Solution
Answer: Option B
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18
The adjusted net profit of a business is Rs. 2,00,000 and the amount of capital employed is Rs. 12,50,000. If goodwill is to be calculated on basis of 3 year purchase of super profit and the normal rate of return is 10% then the value of goodwill will be
Discuss
Answer & Solution
Answer: Option B
Solution:
The correct option is "Rs. 2,25,000".

Children, let us carefully solve this step by step.

Step 1: Normal Profit
We know that Normal Profit = Capital Employed × Normal Rate of Return.
Here, Capital Employed = Rs. 12,50,000 and NRR = 10%.
So, Normal Profit = 12,50,000 × 10% = Rs. 1,25,000.

Step 2: Super Profit
Super Profit = Adjusted Net Profit – Normal Profit.
Adjusted Net Profit = Rs. 2,00,000.
Normal Profit = Rs. 1,25,000.
So, Super Profit = 2,00,000 – 1,25,000 = Rs. 75,000.

Step 3: Goodwill
Goodwill is calculated on the basis of 3 years’ purchase of Super Profit.
Goodwill = 75,000 × 3 = Rs. 2,25,000.

Final Answer:
Thus, the value of goodwill is Rs. 2,25,000 which is Option B.
19
Which type of share hold only one right and that of a fixed rate of dividend
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Answer & Solution
Answer: Option D
Solution:
In accounting, a Non-participating share holds only one right, which is that of a fixed rate of dividend.

Non-participating shares do not have the additional right to participate in any further profits beyond the fixed dividend rate.

Therefore, the correct option is Non-participating.
20
A and B were Sharing Profit of a business in the ratio of 3 : 2. They admit C into partnership, who gets $$\frac{1}{3}$$ of the share of profit from A, $$\frac{1}{2}$$ of the share of profit from B. What will be the new profit sharing ratio now:
Discuss
Answer & Solution
Answer: Option B
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