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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-6 section-15

Each section contains 100 MCQs on Accounting .
51
Given,
Current Assets Rs. 4,00,000
Current Liabilities Rs. 1,60,000
Reserves & Surplus Rs. 1,60,000
Proprietary Ratio (Fixed Assets/Proprietary Funds)       0.75

Fixed Assets will be
Discuss
Answer & Solution
Answer: Option A
No explanation is given for this question. Let's Discuss on Board
52
Consider the following information:
Share capital Rs. 2,00,000
Long term debts Rs. 1,00,000
Current liabilites Rs. 40,000
Fixed assets Rs. 1,80,000
Current assets Rs. 1,60,000

The Solvency ratio of the business is
Discuss
Answer & Solution
Answer: Option A
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53
While preparing accounting records 'Window Dressing' is prohibited due to:
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
54
Match the following:
List-I List-II
a. . . . . . . . . is difference between old ratio and new ratio. 1. Dissolution
b. Dissolution of partnership all the partners of firm is called . . . . . . . . of firm 2. Admitted
c. A minor can be . . . . . . . . to the benefits. 3. Duties
d. Every partner is bound to attend diligently to his . . . . . . . . 4. Sacrificing ratio
Discuss
Answer & Solution
Answer: Option B
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55
Which of the following is not a current asset?
Discuss
Answer & Solution
Answer: Option A
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56
Capital Redemption Reserve Account is available for
Discuss
Answer & Solution
Answer: Option D
Solution:
Capital Redemption Reserve (CRR) is created when a company redeems its redeemable preference shares out of profits or fresh issue of shares.

The main purpose of creating CRR is to maintain the company’s capital intact, since redemption reduces share capital.

However, the amount transferred to CRR cannot be used again for redemption of preference shares or debentures.

It is also not used for reorganisation of share capital.

The CRR can only be utilized for a specific purpose, which is the issue of fully paid bonus shares to shareholders.

Therefore, CRR is available for issuing bonus shares.

Hence, Option D is correct.
57
Which one of the following statements about the admission of a new partner to a firm is true:
Discuss
Answer & Solution
Answer: Option B
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58
Amount set aside to meet losses due to bad debts is a
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Answer & Solution
Answer: Option B
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59
When fixed cost is Rs. 7,000, profit is Rs. 3,000 and sales is Rs. 50,000 the profit volume ratio will be
Discuss
Answer & Solution
Answer: Option C
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60
Ledger is a books of
Discuss
Answer & Solution
Answer: Option B
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