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-5

A company cannot issue:

A) Redeemable Equity shares B) Redeemable Preference shares C) Redeemable Debentures D) Fully Convertible Debentures

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Answer & Solution

Answer: Option A

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In the absence of any agreement, it is presumed that the new partner acquires his share in profits from the old partners in the:

A) New ratio B) Old ratio C) Sacrificing ratio D) Gaining ratio

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Answer & Solution

Answer: Option B

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Given below are two statements, are labelled as Assertion (A) and other as Reason (R):
Assertion (A): The fixed assets in the balance sheet are required to be shown at cost less depreciation.
Reason (R): The balance sheet and profit and loss account disclose a true and fair view.
Choose the correct answer

A) Both (A) and (R) are true and (R) is correct explanation of (A) B) Both (A) and (R) are true but (R) is not the correct explanation of (A) C) (A) is true but (R) is false D) (A) is false but (R) is true

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Answer & Solution

Answer: Option A

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According to the Double Entry System, salary paid to a clerk Ramesh is a

A) Real Transaction B) Personal Transaction C) Nominal Transaction D) Both Real and Personal Transaction

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Answer & Solution

Answer: Option C

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Which of the following should be shown on the asset side of the Balance Sheet:

A) Prepaid insurance B) Share premium C) Outstanding wages D) Outstanding salaries

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Answer & Solution

Answer: Option A

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Which of the following ratios are taken into consideration by a banker before sanctioning the loan?

A) Proprietory Ratio B) Stock-Turnover Ratio C) Debt-Equity Ratio D) All of the above

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Answer & Solution

Answer: Option C

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Which of the following shows position at specific Date?

A) Trading account B) Profit and loss account C) Manufacturing account D) Balance sheet

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Answer & Solution

Answer: Option D

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Value added statement is a statement prepared under:

A) Financial Accounting B) Management Accounting C) Human Resource Accounting D) Social Accounting

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Answer & Solution

Answer: Option D

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Which of the following pairs is/are correctly matched?

A) When a company issues its securities at a price more than the face value ⇔ Shares issued at discount B) When shares issued at an amount less than par value of shares ⇔ Shares issued at premium C) When shares are issued at their face value ⇔ Shares issued at par D) All of the above

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Answer & Solution

Answer: Option C

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After realization of investment balance of sinking fund adjustment account is transferred to

A) Profit and loss a/c B) Debenture a/c C) Sinking fund a/c D) Cash a/c

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Answer & Solution

Answer: Option A

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