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-9

Mr. X forfeited 100 share of Rs. 10 each on which payment of Rs. 2 per share in the first call and Rs. 3 per share in the final call was not received. These shares were re-issued at a deduction of Rs. 1.50 paise per share. Amount transferred to capital reserve will be

A) Rs. 350 B) Rs. 500 C) Rs. 150 D) Rs. 50

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Answer & Solution

Answer: Option A

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Which one of the following statement is correct?

A) A company consists of heterogeneous members B) A body corporate includes a cooperative society C) The expression 'corporation' or 'body corporate' are same D) A partner cannot contract with his firm, where as a member of a company can

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Answer & Solution

Answer: Option D

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A contributory is

A) a creditor B) a shareholder C) a debentureholder D) a convertible debentureholder

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Answer & Solution

Answer: Option B

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Quick ratio is a check

A) Solvency B) Profitability C) Performance capacity D) Liquidity

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Answer & Solution

Answer: Option D

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The basic accounting equation is based on

A) Cost concept B) Accounting period concept C) Accrual concept D) Dual aspect concept

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Answer & Solution

Answer: Option D

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Which of the following is not a feature of debenture?

A) Debenture represent borrowed funds B) Dividend are firstly paid on debentures C) General debentures do not carry voting rights D) Debenture comprises a charge on the assets of the company

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Answer & Solution

Answer: Option B

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On the retirement of a partner, the reserves created out of profits should be transferred to the capital accounts of:

A) The remaining partners in their new profit sharing ratio B) The remaining partners in their old profit sharing ratio C) All the partners in the old profit-sharing ratio D) All the partners in the ratio of their capital balances

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Answer & Solution

Answer: Option C

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Which of the following account does not start with the opening balance?

A) Income and expenditure A/c B) Receipt and payment A/c C) Profit and loss A/c D) Realisation A/c

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Answer & Solution

Answer: Option B

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Which of the following statements are correct?
1. Analysis and interpretation of financial statements, is a function of accounting.
2. Profit and Loss account is prepared for ascertaining financial postition of a firm.
3. Goodwill is a wasting asset.
4. Balance Sheet is prepared for ascertaining financial position of a firm
Select the correct answer

A) 1 and 2 B) 1 and 3 C) 1 and 4 D) 2 and 3

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Answer & Solution

Answer: Option C

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Which one of the following is an investment activity as per AS-7?

A) Redemption of debentures B) Cash in hand C) Purchase of fixed assets D) Interest paid

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Answer & Solution

Answer: Option C

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