Accounting MCQ Questions and Solutions with Explanations | Commerce

A. issue of shares

B. buy back of shares

C. purchase of building

D. dividend paid

A. Cost of extension of factory building

B. Legal cost of purchase of a building

C. Purchase of freehold building

D. Cost of painting old building

A. 18%

B. 12%

C. 36%

D. 30%

A. Margin of Safety $$ = \frac{{{\text{Profit}}}}{{{\text{P/V ratio}}}}$$

B. P/V Ratio $$ = \frac{{{\text{Change in Contribution}}}}{{{\text{Change in sales}}}} \times 100$$

C. Break-even point in units $$ = \frac{{{\text{Fixed cost}}}}{{{\text{Contribution per unit}}}}$$

D. Required sales to earn desired profits $$ = \frac{{{\text{Desired profit}}}}{{{\text{P/V ratio}}}}$$

A. Ouput can be effectively measured

B. Use of asset can be measured in terms of time

C. Utility of the asset can be directly related to its productive use

D. Entire production process is mechanised

A. Less dangerous

B. More dangerous

C. Not dangerous

D. None of the above

A. General Price Level Method

B. Specific Price Level Method

C. Current Cost Accounting Method

D. Generally Accepted Accounting Principles

A. Rs. 1,20,000

B. Rs. 2,20,000

C. Rs. 3,20,000

D. Rs. 20,000

A. 65

B. 35

C. 25

D. 32.50

A. Both (A) and (R) are correct and (R) is the correct explanation for (A)

B. Both (A) and (R) are correct but (R) is not the correct explanation for (A)

C. (A) is correct (R) is incorrect

D. Both (A) and (R) are incorrect