Accounting MCQ Questions and Solutions with Explanations | Commerce

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51.
If the articles of association of the company remains silent as the rate of interest to be paid for calls in arrears the directors can charge interest:

A. 6% per annum

B. 6.5% per annum

C. 5% per annum

D. 5.5% per annum

E. In between 5.5% and 6.5% per annum

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52.
Unearned income is considered as

A. Assets

B. Liability

C. Loss

D. Capital

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53.
Find the cost of closing stock from the following
Current ratio = 2.5
Liquid ratio = 1.5
Working capital = 1,20,000
Fixed assets = 3,00,000

A. Rs. 60,000

B. Rs. 80,000

C. Rs. 1,00,000

D. Rs. 1,20,000

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54.
Capitalist industries results in

A. Decrease in capital creation over time

B. Increase in capital

C. Increase in service employment

D. Increase in income tax

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55.
If the fixed cost is Rs. 40,000, variable cost per unit Rs. 2 and if the selling price per unit is Rs. 3. What will break even point (in-units)?

A. 20,000 units

B. 30,000 units

C. 40,000 units

D. 50,000 units

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56.
When amalgamation is in the nature of merger, the accounting method to be followed is

A. equity method

B. purchase method

C. pooling of interest method

D. consolidated method

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57.
The main objective of preparing Income and Expenditure Account is to know:

A. Cash Balance

B. Financial Condition

C. Total Sales Proceeds

D. Surplus or Deficit

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58.
Which of the following will not be the source for buying back of shares by a company?

A. Company's free reserves

B. Company's securities premium A/c

C. Proceeds of any shares or other specified securities as per Section 77A (i) (iii)

D. Company's borrowings from financial institutions

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59.
Which of the following redeemable preference share due at Rs. 10 per share is suitable for redemption?

A. On which only Rs. 2 application money has been paid

B. On which application money and Rs. allotment money has been paid

C. On which Rs. 7.50 per share has been paid

D. On which Rs. 10 per share has been paid

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60.
Which one of the following is not a method of depreciation?

A. Insurance policy method

B. Depreciated return method

C. The sum of the year digits method

D. Replacement cost method

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Accounting MCQ Questions and Solutions with Explanations | Commerce

51. If the articles of association of the company remains silent as the rate of interest to be paid for calls in arrears the directors can charge interest:

Answer & Solution

52. Unearned income is considered as

Answer & Solution

53. Find the cost of closing stock from the following Current ratio = 2.5 Liquid ratio = 1.5 Working capital = 1,20,000 Fixed assets = 3,00,000

Answer & Solution

54. Capitalist industries results in

Answer & Solution

55. If the fixed cost is Rs. 40,000, variable cost per unit Rs. 2 and if the selling price per unit is Rs. 3. What will break even point (in-units)?

Answer & Solution

56. When amalgamation is in the nature of merger, the accounting method to be followed is

Answer & Solution

57. The main objective of preparing Income and Expenditure Account is to know:

Answer & Solution

58. Which of the following will not be the source for buying back of shares by a company?

Answer & Solution

59. Which of the following redeemable preference share due at Rs. 10 per share is suitable for redemption?

Answer & Solution

60. Which one of the following is not a method of depreciation?

Answer & Solution

Read More Section(Accounting)

51.
If the articles of association of the company remains silent as the rate of interest to be paid for calls in arrears the directors can charge interest:

52.
Unearned income is considered as

53.
Find the cost of closing stock from the following
Current ratio = 2.5
Liquid ratio = 1.5
Working capital = 1,20,000
Fixed assets = 3,00,000

54.
Capitalist industries results in

55.
If the fixed cost is Rs. 40,000, variable cost per unit Rs. 2 and if the selling price per unit is Rs. 3. What will break even point (in-units)?

56.
When amalgamation is in the nature of merger, the accounting method to be followed is

57.
The main objective of preparing Income and Expenditure Account is to know:

58.
Which of the following will not be the source for buying back of shares by a company?

59.
Which of the following redeemable preference share due at Rs. 10 per share is suitable for redemption?

60.
Which one of the following is not a method of depreciation?