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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-5

Each section contains 100 MCQs on Accounting .
71
Which of the following statement is/are true?
1. Tax shield on depreciation and interest is an important variable both for the lessor and the lessee.
2. Lease transactions in India are governed by the lease act.
3. A lessee should evaluate the lease options against the buying option.
4. As per AS-19, financial lease is shown in the balance sheet of the lessee as an asset.
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
72
When all the debentures are redeemed, the balance left in the Debenture Sinking Fund Account is transferred to
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Answer & Solution
Answer: Option D
No explanation is given for this question. Let's Discuss on Board
73
In what order following items should be shown in company's balance sheet?
i. Goodwill
ii. Investment
iii. Creditors
iv. Preliminary expenses
Choose answer from one of the options
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
74
"Make sufficient provisions for future losses, but do not anticipate future profits." The statement is in accordance to the concept of
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Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
75
Which account will be debited with the nominal value of shares, when shares are issued to promoters for the service offered by them?
Discuss
Answer & Solution
Answer: Option D
Solution:
When shares are issued to promoters for the services they have provided, the nominal value of the shares is typically debited to the Share capital account. This reflects the issuance of shares as part of the company's share capital.

Option A: Preliminary expenses are not directly related to the issuance of shares and are usually amortized over time.

Option B: Assets may be affected indirectly by the issuance of shares, but the nominal value of the shares is not directly debited to the Assets account.

Option C: Goodwill is not typically debited when shares are issued; it's related to the purchase of a business at a premium.

So, the correct answer is Option D: Share capital, as it reflects the nominal value of the shares issued to promoters.
76
Whom of the following is paid at last on the dissolution of a company?
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Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
77
Functions of managerial accounting and cost accounting interacting with each other-
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Answer & Solution
Answer: Option A
No explanation is given for this question. Let's Discuss on Board
78
Liquidity ratios are used:
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Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
79
A, B, Co. Ltd. forfeited 20 shares of Rs. 10 each, Rs. 7 called up on which C had paid application and allotment money of Rs. 5 per share. Of these, 15 shares were reissued to D @Rs. 6 per share as fully paid-up for Capital Reserve account would be:
Discuss
Answer & Solution
Answer: Option A
No explanation is given for this question. Let's Discuss on Board
80
Secret reserves may result by:
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board