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-8 section-19

The practice of valuation of inventory 'at cost or market price, whichever is lower' is an example of:

A) Cost Concept B) Consistency Concept C) Conservatism Concept D) Realization Concept

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Answer & Solution

Answer: Option C

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Which of the following statements is incorrect?

A) When proposed dividend does not exceed 10%. It is not obligatory on the company to transfer any profit to its reserve B) Capital redemption reserve can be utilised for writing off miscellaneous expenses and losses C) Dividends is not payable on the calls paid in advance by shareholders D) Reserves created by revaluation of fixed assets are not permitted to be capitalised

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Answer & Solution

Answer: Option B

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In order to implement the provisions of partnership deed, the firm prepares

A) Profit and Loss Adjustment Account B) Profit and Loss Appropriation Account C) Revaluation Account D) Profit and Loss Account

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Answer & Solution

Answer: Option B

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A Ltd has allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis, The amount payable an application is Rs. 2. Mr. X applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from X is

A) 60 shares, Rs. 120 B) 320 shares, Rs. 200 C) 340 shares, Rs. 160 D) 300 shares, Rs. 240

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Answer & Solution

Answer: Option D

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The charter of a company is its:

A) Prospectus B) Memorandum of Association C) Certificate of Incorporation D) Article of Association

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Answer & Solution

Answer: Option B

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Which of the following is not a source of funds:

A) Issue of share capital B) Sale of fixed assets C) Issue of bonus shares D) Share premium

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Answer & Solution

Answer: Option C

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Donation received during the year Rs. 5,000. Donation received in advance Rs. 500, outstanding donation Rs. 300. Amount credited in Income and expenditure will be

A) Rs. 5,100 B) Rs. 4,800 C) Rs. 5,500 D) Rs. 5,300

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Answer & Solution

Answer: Option B

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In the absence of an agreement, interest to be allowed to the partners on their capital, according to Indian Partnership Act, will be at the rate of:

A) 5% B) 6% C) 9% D) 0%

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Answer & Solution

Answer: Option D

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Which of the following errors will not be disclosed by Trial Balance?

A) Errors of Commission B) Errors of Principle C) Errors of finding balance D) None of the above

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Answer & Solution

Answer: Option B

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Which of the following items is not taken in to account while computing Current Ratio?

A) Sundry Creditors B) Sundry Debtors C) Furniture D) Bank Overdraf

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Answer & Solution

Answer: Option C

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