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-4 section-22

The requirement of working capital depends on:

A) The period of operating cylce B) The size of the business C) The turnover of current assets D) All the above A, B and C

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

The meaning of net invested capital is

A) Total assets - Current Liabilities B) Total assets - Total Liabilities C) Total assets - Fictitious Assets - Current Liabilities D) None of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Contribution is

A) Sales - Purchase B) Sales - Variable Cost C) Sales - Fixed Cost D) None of these

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Which among the following is wrong?

A) $${\text{P/V Ratio}} = \frac{{{\text{Contribution}}}}{{{\text{Sales}}}}$$ B) $${\text{P/V Ratio}} = \frac{{{\text{Fixed Cost + Profit}}}}{{{\text{Sales}}}}$$ C) $${\text{P/V Ratio}} = \frac{{{\text{Sales }} - {\text{ Variable Cost}}}}{{{\text{Sales}}}}$$ D) $${\text{P/V Ratio}} = \frac{{{\text{Contribution}}}}{{{\text{Change in Sales}}}}$$ E) $${\text{P/V Ratio}} = \frac{{{\text{Fixed Cost}}}}{{{\text{Sales}}}}$$

Discuss

Answer & Solution

Answer: Option E

No explanation is given for this question. Let's Discuss on Board

Which of the following is not a tool of management accounting?

A) Financial Accounting B) Inflation Accounting C) Standard Costing D) Analysis of Financial Statements

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Assets of an organization is Rs. 21,315 and liabilities is Rs. 4,120. The capital of owner is

A) Rs. 21,315 B) Rs. 17,195 C) Rs. 25,435 D) Rs. 4120

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

The current ratio is ratio between:

A) Current assets and current liabilities B) Liquid assets and current liabilities C) Debts and equity D) Fixed assets and sales

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

On 1^st June 2018, a partner introduced an additional capital Rs. 50,000 in the firm. In the absence of a part nership deed, on 31^st March 2019, he will receive an interest of

A) Rs. 3,000 B) Zero C) Rs. 2,500 D) Rs. 1,800

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Amount spent on advertisement campaign, the benefit of which is likely to last for at least three years, is
OR
Rs. 1,00,000 spent on special advertising compaign will be:

A) Capital expenditure B) Revenue expenditure C) Deferred revenue expenditure D) Contingent expenditure

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Realisation concept would apply when:

A) Money is realised from the debtors B) Goods are delivered to customer C) Order is received D) none of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board