Accounting MCQ Questions and Solutions with Explanations | Commerce

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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

31.
The application money payable on a share should not be less than the following percentage of the value of the share:

A. 5%

B. 10%

C. 20%

D. 25%

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32.
What is the effect of increase in variable cost?

A. It reduces the contribution

B. It increases the profit quantity ratio

C. It increases profit

D. None of the above

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33.
Given-
Stock - Rs. 14,000;
Debtors - Rs. 20,000;
Creditors - Rs. 30,000;
Stock - turnover 5 times;
Credit collection period - 73 days;
Administrative expenses - 20% of sales;
All sales are made on credit. The net profit will be-

A. Rs. 10,000

B. Rs. 20,000

C. Rs. 25,000

D. Rs. 30,000

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34.
Consider the following information:

Net profit before depreciation and tax Rs. 44,000

Depreciation for the year Rs. 8,000

Goodwill written off Rs. 10,000

Rate of tax 50%

Cash flow from operation will be

A. Rs. 36,000

B. Rs. 28,000

C. Rs. 26,000

D. Rs. 13,000

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35.
If current ratio is 2.4 : 1 and current liability is Rs. 20,000/-, then what will be the amount of current assets

A. Rs. 44,000

B. Rs. 48,000

C. Rs. 50,000

D. Rs. 8,333

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36.
Liability of partners for firm's debt is:

A. Joint

B. Separate

C. Joint and separate

D. None of the above

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37.
The cost of goods sold is Rs. 50,000. The value of opening and closing stock is Rs. 15,000 and Rs. 25,000 respectively. The stock turnover rate will be :

A. 2 times

B. 2.5 times

C. 3.3 times

D. 1.25 times

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38.
Given,

1^st January 31^st December

Assets Rs. 30,000 -

Liability Rs. 13,000 -

Capital - Rs. 16,500

Drawing during the year is Rs. 4,000 Capital on 1^th January is:

A. Rs. 12,500

B. Rs. 16,500

C. Rs. 7,000

D. Rs. 43,000

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39.
In Companies Act, 1956 the proforma of B/S is given in:

A. Section 211

B. Section 213

C. Section 263

D. Section 221

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40.
Realisation account is a

A. Personal account

B. Nominal account

C. Real account

D. Suspense account

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1 2 3 4 5 6 7 8 9 10

Net profit before depreciation and tax	Rs. 44,000
Depreciation for the year	Rs. 8,000
Goodwill written off	Rs. 10,000
Rate of tax	50%

	1^st January	31^st December
Assets	Rs. 30,000	-
Liability	Rs. 13,000	-
Capital	-	Rs. 16,500

Accounting MCQ Questions and Solutions with Explanations | Commerce

31. The application money payable on a share should not be less than the following percentage of the value of the share:

Answer & Solution

32. What is the effect of increase in variable cost?

Answer & Solution

33. Given- Stock - Rs. 14,000; Debtors - Rs. 20,000; Creditors - Rs. 30,000; Stock - turnover 5 times; Credit collection period - 73 days; Administrative expenses - 20% of sales; All sales are made on credit. The net profit will be-

Answer & Solution

34. Consider the following information: Net profit before depreciation and tax Rs. 44,000 Depreciation for the year Rs. 8,000 Goodwill written off Rs. 10,000 Rate of tax 50% Cash flow from operation will be

Answer & Solution

35. If current ratio is 2.4 : 1 and current liability is Rs. 20,000/-, then what will be the amount of current assets

Answer & Solution

36. Liability of partners for firm's debt is:

Answer & Solution

37. The cost of goods sold is Rs. 50,000. The value of opening and closing stock is Rs. 15,000 and Rs. 25,000 respectively. The stock turnover rate will be :

Answer & Solution

38. Given, 1st January 31st December Assets Rs. 30,000 - Liability Rs. 13,000 - Capital - Rs. 16,500 Drawing during the year is Rs. 4,000 Capital on 1th January is:

Answer & Solution

39. In Companies Act, 1956 the proforma of B/S is given in:

Answer & Solution

40. Realisation account is a

Answer & Solution

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31.
The application money payable on a share should not be less than the following percentage of the value of the share:

32.
What is the effect of increase in variable cost?

33.
Given-
Stock - Rs. 14,000;
Debtors - Rs. 20,000;
Creditors - Rs. 30,000;
Stock - turnover 5 times;
Credit collection period - 73 days;
Administrative expenses - 20% of sales;
All sales are made on credit. The net profit will be-

34.
Consider the following information:

Net profit before depreciation and tax Rs. 44,000

Depreciation for the year Rs. 8,000

Goodwill written off Rs. 10,000

Rate of tax 50%

Cash flow from operation will be

35.
If current ratio is 2.4 : 1 and current liability is Rs. 20,000/-, then what will be the amount of current assets

36.
Liability of partners for firm's debt is:

37.
The cost of goods sold is Rs. 50,000. The value of opening and closing stock is Rs. 15,000 and Rs. 25,000 respectively. The stock turnover rate will be :

38.
Given,

1^st January 31^st December

Assets Rs. 30,000 -

Liability Rs. 13,000 -

Capital - Rs. 16,500

Drawing during the year is Rs. 4,000 Capital on 1^th January is:

39.
In Companies Act, 1956 the proforma of B/S is given in:

40.
Realisation account is a