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-22

50,000 equity shares of Rs. 10 each, issued at Rs. 20, for the purpose of redemption of preference share capital amounting Rs. 7,50,000. How much amount will be transferred to capital redemption reserve?

A) Rs. 2,00,000 B) Rs. 2,50,000 C) Rs. 5,00,000 D) Rs. 10,00,000

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Answer & Solution

Answer: Option B

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A and B are partners sharing profits and losses in proportion 2 : 1. They admits new partner C hom they give $${\frac{1}{5}^{{\text{th}}}}$$ share in profits. The new profit sharing ratio will be:

A) 8 : 4 : 3 B) 3 : 2 : 1 C) 2 : 1 : 1 D) 4 : 2 : 1

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Answer: Option A

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If current ratio is 2.5, acid test ratio is 1.5 and net working capital is Rs. 45,000, the amount of current liabilities will be:

A) Rs. 15,000 B) Rs. 45,000 C) Rs. 30,000 D) Rs. 75,000

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Answer: Option C

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Dissolution of a firm takes place-

A) by the death of any one of the partner B) by the retirement of any one of the partner C) by the insolvency of any one of the partner D) by the insolvency of all but except one partner

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Answer: Option D

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Over capitalisation may be remedied by:

A) increasing the number of equity shares B) increasing the par value of shares C) issuing additional preference shares D) redemption of debentures

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Answer: Option D

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Statement I Capital expenditure benefits the current accounting period.
Statement II Capital expenditure will also benefit the next accounting period.

A) Both statements are correct B) Both statements are incorrect C) Statement I is correct, but statement II is incorrect D) Statement I is incorrect, but statement II is correct

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Answer: Option A

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After redemption of debentures, the balance of Debenture Redemption Reserve Account is transferred to

A) Capital Reserve Account B) General Reserve Account C) Sinking Fund Account D) Profit and Loss Account

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Answer: Option B

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A dominant partner is one:

A) Who has a smaller financial interest in the business B) Who represents himself as a partner of holding out C) Who neither contributes any capital nor takes any active part in the management D) A partner who has larger financial interest in the business E) Who is not known to the outsiders but possesses real interest in the business and share in the profits of the business

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Answer: Option E

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The lower stock is the periodic indicator-

A) Over investment in stock/inventory B) Monpoly position C) Payment/clearing status/position D) Overtrading

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Answer: Option A

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An 'insolvent' is a person who is

A) Unable to pay his daily expenses B) Does not pay his taxes C) Takes loan and refuses to pay D) Unable to pay his depts

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Answer & Solution

Answer: Option D

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