Accounting MCQ Questions and Solutions with Explanations

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.
Indicate the correct statement as regards the sources of funds for a Funds Flow Statement from the following:
i. Increase in working capital
ii. Decrease in working capital
iii. Writing off the intangible/fictitious assets
iv. Issuing equity shares for acquisition of a building for office
v. Charging depreciation on fixed assets

A. i, iii, iv

B. ii, iii, v

C. i, iv, v

D. ii, iii, iv

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32.
The cost of debt capital is as-

A. Paid divident

B. Paid interest

C. Paid bonus

D. None of the above

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33.
A trader values his opening stock 10% over cost. It value of opening stock is written as Rs. 27,500 then its cost would be

A. Rs. 30,000

B. Rs. 24,750

C. Rs. 25, 000

D. Rs. 22,500

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34.
Trial balance is prepared to ascertain-

A. Profit and loss

B. Cash transaction

C. Credit transaction

D. Arithmetical accuracy of financial transaction

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35.
Under which method of depreciation, the value of machinery never comes to zero:

A. Fixed installment method

B. Depreciation fund method

C. Diminishing balance method

D. Depletion unit method

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36.
Debenture holders are

A. Creditors

B. Owners

C. Customers

D. Regulators

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37.
The balance of a partner's current accounts is

A. Debit balance

B. Credit balance

C. Debit or Credit balance

D. Neither debit nor credit balance

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38.
The general manager is entitled to a commission of 10% on net profit after charging the commission of works manager. The works manager is entitled to a commission of 5% on the net profit after charging the commission of general manager. The profit before charging any commission is Rs. 7,000. The commission of the works manager, to the nearest rupee, will be

A. Rs. 321

B. Rs. 304

C. Rs. 337

D. Rs. 339

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39.
An accounting system that does not take into consideration outstanding expenses and accrued incomes for computation of profit Is called

A. Double Entry System

B. Accrual Based System

C. Single Entry System

D. Cash System

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40.
Which method of HR Accounting was developed by Lev and Schwartz?

A. Capitalisation of historical cost model

B. Opportunity cost model

C. Present value of future earning model

D. Replacement cost model

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Accounting MCQ Questions and Solutions with Explanations | Commerce

Answer & Solution

32. The cost of debt capital is as-

Answer & Solution

33. A trader values his opening stock 10% over cost. It value of opening stock is written as Rs. 27,500 then its cost would be

Answer & Solution

34. Trial balance is prepared to ascertain-

Answer & Solution

35. Under which method of depreciation, the value of machinery never comes to zero:

Answer & Solution

36. Debenture holders are

Answer & Solution

37. The balance of a partner's current accounts is

Answer & Solution

Answer & Solution

39. An accounting system that does not take into consideration outstanding expenses and accrued incomes for computation of profit Is called

Answer & Solution

40. Which method of HR Accounting was developed by Lev and Schwartz?

Answer & Solution

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32.
The cost of debt capital is as-

33.
A trader values his opening stock 10% over cost. It value of opening stock is written as Rs. 27,500 then its cost would be

34.
Trial balance is prepared to ascertain-

35.
Under which method of depreciation, the value of machinery never comes to zero:

36.
Debenture holders are

37.
The balance of a partner's current accounts is

39.
An accounting system that does not take into consideration outstanding expenses and accrued incomes for computation of profit Is called

40.
Which method of HR Accounting was developed by Lev and Schwartz?