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-3 section-16

Bad Debt in Departmental Accounts is:

A) Charged to general Profit and Loss Account B) Divided equally amongst the department C) Divided on the basis of debtors D) Divided on the basis of credit sales

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Answer & Solution

Answer: Option D

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According to the money measurement concept, which among the following will be recorded in the books of account of the business:

A) Health of managing director of the company B) Quality of company's goods C) Value of plant and machinery D) None of these

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Answer & Solution

Answer: Option C

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A and B are partners in a firm and share profits and losses in the ratio of 3 : 2. C joins firm as new partner and contributes Rs. 6,000 as premium for goodwill in cash. Here, the premium for goodwill shall be shared by A and B on the basis of new profit sharing ratio, that is 5 : 3 : 2 as

A) Rs. 3,600 : Rs. 2,400 B) Rs. 3,000 : Rs. 3,000 C) Rs. 2,400 : Rs. 3,600 D) Rs. 2,000 : Rs. 4,000

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Answer & Solution

Answer: Option B

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Given
Opening stock - Rs. 5,000
Closing stock - Rs. 7,000
Purchases - Rs. 10,000
Manufacturing expenses - Rs. 20,000
Loss of meterials by fire - Rs. 1,000
Manufacturing cost will be:

A) Rs. 28,000 B) Rs. 29,000 C) Rs. 27,000 D) Rs. 30,000

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Answer & Solution

Answer: Option A

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The total average cost of a firm on producing 5 units is Rs. 30/- and the average cost of producing 6 units is Rs. 32/-. The marginal cost of production of the sixth unit will be

A) Rs. 2 B) Rs. 12 C) Rs. 32 D) Rs. 42

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Answer & Solution

Answer: Option D

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A company can pay dividends out of

A) Money provided by the government for such purpose B) Share premium account C) Any of the above D) None of the above

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Answer & Solution

Answer: Option A

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When a company buys its own debenture as an investment, the debenture account is debited with

A) Face value of debenture B) Paid-up value of debentures C) Prepaid amount on debenture D) Difference between fall value and paid-up value on debenture

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Answer & Solution

Answer: Option A

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Which one of the following does not consititute a Current Liability:

A) Bills payable B) Contingent liability C) Trade creditors D) Interest outstanding on debentures

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Answer & Solution

Answer: Option B

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Share premium received by issuing shares can be used for:

A) Payment of dividends B) Issue of bonus shares C) Remuneration to management D) Any other business Purpose

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Answer & Solution

Answer: Option B

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The discount allowed on reissue of forfeited shares is debited to

A) Share Capital A/c B) Profit and Loss A/c C) Capital Redemption Reserve A/c D) Forfeited Shares A/c

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Answer & Solution

Answer: Option D

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