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-5 section-21

If equity share are forfeited then capital account is debited with

A) Face value of share B) Prepaid amount of shares C) Called amount on shares D) Uncalled amount on shares

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Answer & Solution

Answer: Option C

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Depreciation of fixed assets is an example of

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

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Answer & Solution

Answer: Option B

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Gearing ratio means the following ratio:

A) Long-term debt + Preference capital/Net worth B) Long-term debt/Equity capital C) Long-term debt/Preference capital D) Long-term debt/Equity capital + Preference capital

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Answer & Solution

Answer: Option B

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Preference Shares dividend & ratio of net profit after tax and total number of equity shares mutual ratio known as:

A) Solvency Ratio B) Overall Profitability Ratio C) Financial Position Ratio D) Earnings per share

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Answer & Solution

Answer: Option D

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Which of the following should be shown on the asset side of the Balance sheet:

A) Preliminary Expenses B) Outstanding Rent C) Share Premium A/c D) None of the above

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Answer & Solution

Answer: Option A

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Interest on capital provided to partners is calculated on

A) Capital at the end-drawing B) Capital at the end of the year C) On Average capital D) Opening capital of the year

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Answer & Solution

Answer: Option D

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Which of the following types of information dues Ind AS-107 not require to be disclosed about the significance of financial instruments?

A) Fair value of financial instruments B) Carrying amounts of categories of financial instruments C) Information about the use of hedge accounting D) Information about financial instruments, contracts and obligations under share based payment transactions

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Answer & Solution

Answer: Option D

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Which of the following is a deferred revenue expenditure?

A) Legal expenses incurred on the purchase of land B) Expenses on a mega advertisement campaign while launching a new product C) Expenses incurred on installation of a new machine D) Wages paid for construction of an additional room in the building

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Answer & Solution

Answer: Option B

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For non-profit organisations, net income is ascertained by preparing:

A) Receipt and Payment Account B) Profit and Loss Account C) Fund Flow Statement D) Income and Expenditute Account

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Answer & Solution

Answer: Option D

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Contingent liability is shown due to:

A) concept of full disclosure B) concept of conservatism C) concept of materiality D) dual aspect concept

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Answer & Solution

Answer: Option A

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