Accounting MCQ Questions and Solutions with Explanations | Commerce

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21.
The balance of Capital Redemption Reserve Account is available for:

A. Redemption of redeemable preference shares

B. Redemption of redeemable debentures

C. Re-organisation of share capital

D. Issue of bonus shares

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22.
Earning return ratio shows the relationship between earning per share and whom?

A. Net profit

B. Number of equity share

C. Market price per share

D. Divided per share

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23.
Current assets are valued at:

A. Net replacement cost

B. Market value

C. Cost or market price whichever is lower

D. Depreciated value

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24.
According to which concept, it is necessary to disclose all the necessary information in financial statements?

A. Materiality concept

B. Dual-aspect concept

C. Concept of full disclosure

D. Concept of uniformity

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25.
Cost of goods sold is Rs. 20,000, gross profit is Rs. 5,000 and sales return is Rs. 10,000. On the basis of above data find sales?

A. Rs. 15,000

B. Rs. 27,000

C. Rs. 25,000

D. Rs. 35,000

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26.
Bonus shares can be issued from:

A. Credit balance in Profit & Loss A/c

B. Share Premium A/c

C. General Reserve A/c

D. All of the above A, B and C

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27.
Bonus is:

A. paid to industrial workers only

B. always linked with productivity

C. a defered wage

D. Paid out of profits only

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28.
Interpretation of Financial Statement includes-

A. Criticism and Analysis

B. Comparison and Trend Study

C. Drawing Conclusions

D. All the above

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29.
Which of the following error will not affect the trial balance?

A. Posting in wrong side

B. Wrong totaling of account

C. Compensating error

D. Ascertain wrong balance of account

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30.
A company forfeited 30 share of Rs. 10 each for non-payment of allotment Rs. 3 share and call money Rs. 4 per share. The company re issued these shares as fully paid-up shares at the rate of Rs. 8 per share. Amount transferred to capital reserve will be

A. Rs. 300

B. Rs. 60

C. Rs. 90

D. Rs. 30

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Accounting MCQ Questions and Solutions with Explanations | Commerce

21. The balance of Capital Redemption Reserve Account is available for:

Answer & Solution

22. Earning return ratio shows the relationship between earning per share and whom?

Answer & Solution

23. Current assets are valued at:

Answer & Solution

24. According to which concept, it is necessary to disclose all the necessary information in financial statements?

Answer & Solution

25. Cost of goods sold is Rs. 20,000, gross profit is Rs. 5,000 and sales return is Rs. 10,000. On the basis of above data find sales?

Answer & Solution

26. Bonus shares can be issued from:

Answer & Solution

27. Bonus is:

Answer & Solution

28. Interpretation of Financial Statement includes-

Answer & Solution

29. Which of the following error will not affect the trial balance?

Answer & Solution

30. A company forfeited 30 share of Rs. 10 each for non-payment of allotment Rs. 3 share and call money Rs. 4 per share. The company re issued these shares as fully paid-up shares at the rate of Rs. 8 per share. Amount transferred to capital reserve will be

Answer & Solution

Read More Section(Accounting)

21.
The balance of Capital Redemption Reserve Account is available for:

22.
Earning return ratio shows the relationship between earning per share and whom?

23.
Current assets are valued at:

24.
According to which concept, it is necessary to disclose all the necessary information in financial statements?

25.
Cost of goods sold is Rs. 20,000, gross profit is Rs. 5,000 and sales return is Rs. 10,000. On the basis of above data find sales?

26.
Bonus shares can be issued from:

27.
Bonus is:

28.
Interpretation of Financial Statement includes-

29.
Which of the following error will not affect the trial balance?

30.
A company forfeited 30 share of Rs. 10 each for non-payment of allotment Rs. 3 share and call money Rs. 4 per share. The company re issued these shares as fully paid-up shares at the rate of Rs. 8 per share. Amount transferred to capital reserve will be