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-19

Which one of the following statements is not true as per the rule laid down in Garner Vs. Murray:

A) The solvent partners should bring in cash their share of loss on realisation B) The loss on account of insolvency of a partner should then be borne by the solvent partners in the ratio of their capitals, after bringing in cash such loss on realisation C) A solvent partner having debit balance in his capital account just before the dissolution will not be required to bear the loss on account of insolvency of a partner D) A solvent partner having debit balance in his capital account, just before dissolution should bring in sufficient cash to raise his capital to his profit ratio

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Answer & Solution

Answer: Option D

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Net worth of a business means:

A) equity capital B) total assets C) fixed assets - current assets D) total assets - total external liabilities

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Answer & Solution

Answer: Option D

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High ratio low profitability' is applicable to:

A) Net profit ratio B) Rate of return on investment C) Operating ratio D) Stock turnover ratio

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Answer & Solution

Answer: Option C

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The discount on issue of debentures is written off

A) before redemption of debentures B) after redemption of debentures C) in any period decided by the company D) in no case later than the date of redemption

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Answer & Solution

Answer: Option D

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The present value of the future contributions of employees is one of the methods of

A) HR accounting B) inflation accounting C) social accounting D) responsibility accounting

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Answer & Solution

Answer: Option C

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Match the following

List I	List II
a. Capital is the difference between	1. Cost of goods sold from sales
b. Gross profit is ascertained by deducting	2. To find out cost of production
c. Wages paid for erecting machines are	3. Assets and liabilities
d. The manufacturing account is prepared	4. Debited to machinery account

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

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Answer & Solution

Answer: Option B

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Trade mark, goodwill and building are shown under which head in company's balance sheet?

A) Fixed asset B) Current asset C) Loans and Advances D) Investment

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Answer & Solution

Answer: Option A

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Opening stock	Rs. 2,000
Closing stock	Rs. 3,000
Purchases	Rs. 31,000
Debentures (representing ¹/₃ of owner's capital)	Rs. 5,000
Sales	Rs. 50,000

Capital turnover ratio will be:

A) 150% B) 200% C) 250% D) 333.33%

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Answer & Solution

Answer: Option D

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Share Allotment Account is a

A) Personal Account B) Nominal Account C) Real Account D) Impersonal Account

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Answer & Solution

Answer: Option A

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Incomplete method of accounting cannot be used by which of the following?

A) Sole trader B) Partnership firm C) Public limited company D) A Lawyer

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Answer & Solution

Answer: Option C

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