Accounting MCQ Questions and Solutions with Explanations | Commerce

At the time of retirement of a partner profit on revaluation of assets and liabilities is credited to

Premium received on the issue of shares is shown in:

Which one of the following statements is incorrect?

Stock Rs. 14,000; Debtors Rs. 20,000: Creditors Rs. 20,000; Credit balance of profit and loss account at the beginning of the year Rs. 18,000; administration and selling expenses Rs. 20,000; 10% dividend on equity capital Rs. 3,000.
The following ratios are also given:
Stock turnover: 5 times
Current ratio 2 : 1
Debtors collection period: 73 days
Outstanding expenses: 15% of creditors
Ratio of net profit after tax to net tangible assets is 1: 10
Rate of Income tax: 5%
Ratio of fixed assets to paid up capital is 9: 10.
The total assets of the firm are:

$$\frac{{{\text{Profit}}}}{{{\text{P/V Ratio}}}} = .\,.\,.\,.\,.\,.\,.\,.$$

Realization principle of accounting does not apply to:

Which of the following is a contingent liability?

If cash is Rs. 10,000, closing stock is Rs. 25,000, debtors is Rs. 5000, creditors is Rs. 22,000 and bank overdraft is Rs. 8000, then the current ratio will be

Expenditure incurred by a publisher for acquiring copyrights is a

Under the yield method of valuation of equity share capital, if for an equity share of Rs. 50 the normal rate of return is 10% and expectedrate of return is 5%, then the value of an equity share will be