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-7

Underwriting commission is due on which basis?

A) On issue price of shares B) On face value of shares C) On market price of shares D) On called up value of shares

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Answer & Solution

Answer: Option A

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The cost of taking 'license' to run cinema is

A) Revenue B) Capital C) Investment D) None of the above

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Answer & Solution

Answer: Option B

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Which is the convention of accounting, where in there is no overvaluation of assets and incomes:

A) Uniformity B) Materiality C) Conservatism D) Continuity

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Answer & Solution

Answer: Option C

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Ram and Shyarn are partners in a firm with a capital of Rs. 4,80,000 and Rs. 3,10,000 respectively. They admitted Ganesh as a partner with $${\frac{1}{4}^{{\text{th}}}}$$ share of profit, and Ganesh brings Rs. 3,00,000 as his capital. Ganesh's share of goodwill will be

A) Rs. 1,10,000 B) Rs. 27,500 C) Rs. 17,500 D) Rs. 70,000

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Answer & Solution

Answer: Option B

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Match List-I with List-II and choose answer

List-I	List-II
a. Cash	1. Equity share capital
b. Profit	2. Permanent property
c. Discount on issue of shares	3. Virtual asset
d. Machinery and plant	4. Current asset

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

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Answer & Solution

Answer: Option B

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In case of a company "Buy Back" is related to:

A) Prospectus B) Shares C) Debentures D) Cheques

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Answer & Solution

Answer: Option B

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Indicate which of the following is correct?

A) Net profit + Operating expenses + Cost of goods sold = Sales B) Net loss + Operating expenses + Purchases = Sales C) Gross profit + Net loss - Cost of goods sold = Net profit D) Sales + Net loss - Gross profit = Cost of goods sold

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Answer & Solution

Answer: Option A

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On what value the depreciation is charged in the books of the buyer in case of hire purchase method?

A) Hire purchase price B) Cash price C) Hire purchase price or cash price whichever is more D) Assumed price

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Answer & Solution

Answer: Option B

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Which one of the following statements is false:

A) Realisation A/c is credited when the assets are realised B) Realisation A/c is directly credited when unrecorded asset is realised C) When goodwill is given in the books of a firm, then on dissolution of the firm goodwill A/c is also transferred to realisation A/c D) In case of gradual realisation of assets, the cash will be distributed amongst the partners in their profit-sharing ratio though their capitals are not in their profit-sharing ratio

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Answer & Solution

Answer: Option D

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While preparing Funds Flow Statement an increase in working capital is regarded as:

A) Application of funds B) Source of funds C) Neither application nor source of funds D) Both application as well as source of funds

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Answer & Solution

Answer: Option A

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