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-6 section-11

The surplus or deficit revealed by income and expenditure account is transferred to:

A) Receipts and payments account B) Profit and loss account C) Capital account D) Capital fund

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Answer & Solution

Answer: Option D

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When dividend is actually received on due date

A) the pro-rata amount relating the period before the date of acquisition is entered in the income column (Cr) of the following investment account B) the pro-rata amount relating to the period after the date of acquisition is entered in the income column (Cr) of the investment account C) the entire amount is entered in the income column (Dr) of the investment account D) the entire amount is entered in the capital column (Cr) of the investment account

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Answer & Solution

Answer: Option B

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If the cost of goods sold is Rs. 1,00,000, the value of opening stock is Rs. 20,000 and closing stock is Rs. 80,000, then the stock turnover ratio will be:

A) 5 times B) 4 times C) 2 times D) 1 times

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Answer & Solution

Answer: Option C

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Which of the following statements is not true?

A) An expenditure intended to benefit the current year is revenue expenditure B) Amount paid for acquiring goodwill is capital expenditure C) Wages paid for the installation of a new machine is usually debited to wages account D) Revenue expenditure is not intended to benefit future period

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Answer & Solution

Answer: Option C

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Premium on issue of equity shares is:

A) Capital income B) Revenue income C) Incidental income D) None of these

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Answer & Solution

Answer: Option A

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Inventory Turnover Ratio is:

A) Sales/closing stock B) Cash sales/average stock C) Cost of sales/average stock D) Cost of sales/closing stock

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Answer & Solution

Answer: Option C

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When a partner is guilty of fraud or negligence within the scope of his authority:

A) Only he will be liable for his act B) He can be expelled C) All partners are liable if there is an agreement to this effect D) All partners are liable even if there is no such agreement

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Answer & Solution

Answer: Option D

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Underwriting commission and brokerage on the issue of shares cannot exceed the following percent of issue price of shares:

A) 2.5% B) 3% C) 5% D) 6%

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Answer & Solution

Answer: Option C

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The balance of DDR or Deposit Fund account is transferred to

A) Profit & Loss B) General Reserve Account C) Deposit Fund Investment Account D) None of the above

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Answer & Solution

Answer: Option B

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Which one of the following is a capital expenditure:

A) Painting delivery truck at a cost of Rs. 1,000 B) Spent Rs. 250 for repairs in building C) Purchase of pencil sharpener D) Purchase of a type-writer

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Answer & Solution

Answer: Option D

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