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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-6

Each section contains 100 MCQs on Accounting .
31
Which of the following reports have to be submitted before the company's annual general meeting as per the Companies Act?
Discuss
Answer & Solution
Answer: Option D
No explanation is given for this question. Let's Discuss on Board
32
Match the following.
List-I List-II
a. Absorption 1. Profit on reissue of shares is to be transferred to . . . . . . . .
b. Accumulated losses and fictitious assets 2. When there are one or more liquidation and no formation, it is known as . . . . . . . .
c. Consolidated revenue profits 3. Internal reconstruction is generally resorted to write off . . . . . . . .
d. Capital reserve 4. The group share of proposed dividends by the subsidiary is added to . . . . . . . .
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
33
Under which section of the Companies Act provision has been made for the use of share premium?
Discuss
Answer & Solution
Answer: Option C
Solution:
The correct option is "Section 52".

Section 52 of the Companies Act, 2013 deals with the provisions regarding the use of the Securities Premium Account (commonly called Share Premium).

According to this section, the amount received as share premium cannot be distributed as dividend but can be utilized only for specific purposes such as:

1. Issuing fully paid bonus shares to members.
2. Writing off preliminary expenses of the company.
3. Writing off expenses, commission, or discount allowed on the issue of shares or debentures.
4. Providing for the premium payable on redemption of redeemable preference shares or debentures.
5. Buying back its own shares in accordance with the provisions of the Act.

Why not the others?

Section 65 relates to unlimited companies to provide for reserve share capital, not share premium.

Section 78 was under the old Companies Act, 1956 and no longer applies in the 2013 Act.

Section 80 in the old Act dealt with redemption of preference shares, not with share premium utilization.

Therefore, the correct answer is Section 52.
34
Profit on revaluation of assets in case of retirement of a partner shall be distributed to capital accounts of:
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
35
The amount of depreciation provided in the Sinking Fund Method when compared to Annuity Method is:
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
36
When fixed cost is Rs. 10,000 and the profit volume ratio is 20% then break even point will be
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
37
A and B are equal partners. When partnership was dissolved their capitals are Rs. 30,000 and Rs. 40,000 respectively. After all assets are sold and liabilities paid, there is cash balance of Rs. 60,000. The amount of profit or loss on realisation is:
Discuss
Answer & Solution
Answer: Option D
No explanation is given for this question. Let's Discuss on Board
38
Pre-acquisition profit in a subsidiary company is considered as
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
39
A journal entry, in which two or more accounts are debited/credited, is known as
Discuss
Answer & Solution
Answer: Option D
No explanation is given for this question. Let's Discuss on Board
40
The stock of stationary on 1st January 2002 is Rs. 300, payment for stationary during the year is 2002 Rs. 1,080 and stock of stationary on 31st December 2002 is Rs. 50. What will be the amount shown in income and expenditure account for the year ending 31st December, 2002?
Discuss
Answer & Solution
Answer: Option D
Solution:
To find the amount shown in the income and expenditure account for the year ending 31st December 2002, we need to calculate the total expenditure on stationary during the year. This can be done by adding the opening stock to the amount paid for stationary during the year and then subtracting the closing stock.

So, the calculation would be:
Opening stock + Payment during the year - Closing stock
= Rs. 300 + Rs. 1,080 - Rs. 50
= Rs. 1,330

Therefore, the correct amount shown in the income and expenditure account for the year ending 31st December 2002 is Rs. 1,330.