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-7 section-12

On 1^st January, 1996 the stock was valued at Rs. 7,000. During January the purchases of the stock amounted to Rs. 23,000 and the cost of sales during the same period amounted to Rs. 21,000. What had been the value of the stock on 31^st January, 1996:

A) Rs. 7,000 B) Rs. 5,000 C) Rs. 2,000 D) Rs. 9,000

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

What is the main objective of financial accounting?

A) Profit and loss account only B) Balance sheet only C) Both profit and loss account and balance sheet D) Trial balance only

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

For assessing the firms efficiency of operation,we need to analyse the combined effect of which of the following pairs of ratios:

A) Debt-to-net worth ratio and the Interest coverage ratio B) The current ratio and the inventory-turnover ratio C) Earnings per share and the coverage ratio D) The Net Profit margin and the net operating profit rate of return

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Non-Trading Institutions prepare:

A) Trading Account B) Trading, Profit and Loss Account C) Income & Expenditure Account D) None of the above

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Short working means

A) Excess of minimum rent over royalty B) Excess of royalty over minimum rent C) Surplus of royalty D) Excess of actual rent over minimum rent

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Match the following.

List-I	List-II
a. After reissue of forfeited shares the balance of share forfeiture account is transferred to . . . . . . . .	1. Assets
b. Bonus issue is made out of . . . . . . . .	2. Free reserve
c. Debentures secured by a charge on . . . . . . . . are termed as secured debentures.	3. Accumulated profits
d. Workmen's compensation fund is . . . . . . . . to extent there is no compensation payable.	4. Capital Reserve A/c

A) a-4, b-3, c-2, d-1 B) a-4, b-3, c-1, d-2 C) a-2, b-1, c-4, d-3 D) a-2, b-4, c-1, d-3

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

The part of share capital, which can be called up only on the winding up of a company, is called:

A) authorised B) called up capital C) winding up capital D) reserve capital

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Depreciation refers to:

A) Fixed assets B) Goodwill C) Floating assets D) All the three

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

A company has spent Rs. 20,000 on painting of its building. It should be recorded as

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

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

A new partner brings in cash as his share of goodwill, this amount will be distributed among old partners in:

A) Old profit sharing ratio B) Equal ratio C) Ratio of capitals D) Sacrifice ratio

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board