Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Section 20 Section 21 Section 22 Section 23 Section 24 Section 25 Section 26 Section 27 Section 28 Section 29 Section 30

11.
Match List-I with List-II and select the correct answer:

List-I List-II

a. Credit purchase of an asset 1. Purchase Return

b. Cash sales of an asset 2. Sales Return

c. Return inward 3. Cash Book

d. Return outward 4. Journal Proper

A. a-1, b-2, c-3, d-4

B. a-3, b-1, c-4, d-2

C. a-4, b-3, c-2, d-1

D. a-1, b-3, c-2, d-4

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12.
Which of the following is not an example of contingent liability?

A. Liability under guarantee

B. Interim dividend

C. Liability in respect of bills discounted

D. None of the above

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13.
The current ratio of a firm is 2 : 1. Which one of the following suggestion would improve the ratio?

A. To pay a current liability

B. To borrow money for a short period on an interest bearing promissory note

C. To purchase goods for cash

D. To give an interest bearing promissory note to a creditor in payment of the full amount due to him

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14.
The convention of conservation will have the effect of-

A. overstatements of assets

B. understatements of assets

C. understatements of liabilities

D. understatements of provision for bad and doubtful debts

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15.
Horizontal analysis is

A. Dynamic analysis

B. Average analysis

C. Trend analysis

D. Static analysis

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16.
The liquidity position of a business enterprise is best reflected by:

A. Current ratio and debtors turnover ratio

B. Quick ratio and asset turnover ratio

C. Current ratio and net profit ratio

D. Quick ratio and ROI

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17.
Which one of the follwoing is not a function of accounting?

A. Keeping systematic record

B. Protecting the properties of the Business

C. Maximising the results

D. Meeting legal requirements

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18.
A company issued shares of Rs. 100 each on which Rs. 80 has been paid-up and the company declares a dividend of 25%. The amount of dividend per share comes to Rs. 20. On the basis of normal rate of return of 10%, the market value of share will be

A. Rs. 40/40

B. Rs. 120/120

C. Rs. 160/160

D. Rs. 200/200

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19.
What is the main function of accounting?

A. Recording of economic data

B. Provide information base for work

C. Recording and classification of business transaction

D. Achievement of non-economic goals

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20.
Assertion (A) The Partnership Act does not make it obligatory that a firm must a deed in writing.
Reason (R) It is better to have it in writing to avoid confusion.

A. (A) is true, but (R) is false

B. (A) is false, but (R) is true

C. Both (A) and (R) are true

D. Both (A) and (R) are false

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Credit purchase of an asset	1. Purchase Return
b. Cash sales of an asset	2. Sales Return
c. Return inward	3. Cash Book
d. Return outward	4. Journal Proper

Accounting MCQ Questions and Solutions with Explanations | Commerce

11. Match List-I with List-II and select the correct answer: List-I List-II a. Credit purchase of an asset 1. Purchase Return b. Cash sales of an asset 2. Sales Return c. Return inward 3. Cash Book d. Return outward 4. Journal Proper

Answer & Solution

12. Which of the following is not an example of contingent liability?

Answer & Solution

13. The current ratio of a firm is 2 : 1. Which one of the following suggestion would improve the ratio?

Answer & Solution

14. The convention of conservation will have the effect of-

Answer & Solution

15. Horizontal analysis is

Answer & Solution

16. The liquidity position of a business enterprise is best reflected by:

Answer & Solution

17. Which one of the follwoing is not a function of accounting?

Answer & Solution

18. A company issued shares of Rs. 100 each on which Rs. 80 has been paid-up and the company declares a dividend of 25%. The amount of dividend per share comes to Rs. 20. On the basis of normal rate of return of 10%, the market value of share will be

Answer & Solution

19. What is the main function of accounting?

Answer & Solution

20. Assertion (A) The Partnership Act does not make it obligatory that a firm must a deed in writing. Reason (R) It is better to have it in writing to avoid confusion.

Answer & Solution

Read More Section(Accounting)

11.
Match List-I with List-II and select the correct answer:

List-I List-II

a. Credit purchase of an asset 1. Purchase Return

b. Cash sales of an asset 2. Sales Return

c. Return inward 3. Cash Book

d. Return outward 4. Journal Proper

12.
Which of the following is not an example of contingent liability?

13.
The current ratio of a firm is 2 : 1. Which one of the following suggestion would improve the ratio?

14.
The convention of conservation will have the effect of-

15.
Horizontal analysis is

16.
The liquidity position of a business enterprise is best reflected by:

17.
Which one of the follwoing is not a function of accounting?

18.
A company issued shares of Rs. 100 each on which Rs. 80 has been paid-up and the company declares a dividend of 25%. The amount of dividend per share comes to Rs. 20. On the basis of normal rate of return of 10%, the market value of share will be

19.
What is the main function of accounting?

20.
Assertion (A) The Partnership Act does not make it obligatory that a firm must a deed in writing.
Reason (R) It is better to have it in writing to avoid confusion.