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-18
Read the following statements.
1. Financial statements are only interim reports.
2. Financial statements are prepared on the basis of realisable values.
3. The preparation of financial statements is not an ultimate aim.
4. Certain assumptions are necessary to prepare financial statements.
Which of the following combinations consists of all true statements?
X and Y were sharing profit and loss of the business in the ratio of 3 : 2. They decided to admit Z, who will get $$\frac{1}{3}$$ of X share of profit form X and $$\frac{1}{2}$$ of Y share of profit from Y. New profit sharing ratio will be
ABC Ltd was incorporated with an authorized share capital of Rs. 1,00,000 equity shares of Rs. 10 each. The board of directors decided to allot 10,000 shares credited as fully paid to the promoters of the company for their services. Which account should be debited in the books of ABC Ltd?
Reconstruction of a company takes place when
1. the company is undercapitalised.
2. company has incurred heavy losses which must be written off.
3. the company is overcapitalised.
Select the correct answer:
